Legal Question in Consumer Law in Virginia

Is being asked to sign two contracts legal?

If an original contract was signed to receive a service for ''X'' amount and in the original contract it had no expiration date, no ''subject to change'', no ''rights to increase''. Just a simple typed up contract. Can you be required to sign another contract, when you already have a contract, in order for them to increase their rates? Or do they have the right to shut your service off if you do not agree to this other conract? This is pertaining to a lady that owns 4 wells on two plats, providing water to 100 homes, which according to our county, should be regulated by the SCC but is not currently being regulated, as the SCC wasn't aware of their existance. It's currently under investigation by the SCC, pending a response by the well owner, requesting from her, the number of connections she is providing water to. In the meantime, until the SCC can regulate them, they are trying to send certified mail with a new contract for an increased amount. Is this legal? How long are contracts good for if there is no expiration date? Can they increase the rate if it doesn't specify in the original contract that the prices are subject to change? If they should wish to persue this in court, would it be considered a frivolous lawsuit?


Asked on 9/25/06, 7:56 am

1 Answer from Attorneys
Jonathon Moseley Jonathon A. Moseley

Re: Is being asked to sign two contracts legal?

Generally speaking, no, someone cannot require you to sign a new contract simply because they don't like the old one. When they sign a contract, they are bound by it. You can be sure that if you did not want to follow the contract, they would be demanding that you comply with all of the terms of the contract.

For too many people, especially in business, a contract is only for the other guy to follow, but not for them.

However, the SCC may have regulatory authority regardless of whether the know about the wells or not. The contract may be regulated already. That is, if the law gives them authority over the situation, it does not matter whether they take action or they don't. They still have authority, and the contract is regulated by them, whetehr they know it or not.

Therefore, it is possible that rates are set by the SCC or other authority.

The lack of detail in your contract would tend to agree with the idea that the regulatory authority was supposed to set rates. One would not need to put so much detail in a contract if the question is already handled by regulation.

But a definite answer would require looking at your contract and at exactly what the SCC says and does. It is not possible to make a firm conclusion so far.

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Answered on 9/25/06, 9:38 am


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