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MORE ON WHO SHOULD SIGN YOUR CONTRACTS FROM JULY 17, 2015 ARTICLE
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Ken
This question follows Jesse’s article about who should sign contracts.
We have two residential subscribers who are top executives in a large publically traded company. The company asked us to install systems at these executives homes, and the company paid for the install and the recurring. This company (and the executives) are concerned due to the risk the executives face as high profile members of a company that is the target of protestors.
We have the homeowners sign your agreements, because they are the users. We elected not to work on their company commercial projects, because the company would require us to sign their one-sided contract. Per your frequent admonitions, that is just asking for trouble. So, are we exposed in this case because the bill payer is not the homeowner/user?
Dave
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Response
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From a liability perspective I am not concerned with who is paying for the alarm services. I am concerned that the end user, the one using the alarm services, signs the agreement with the protective provisions. It's the one suffering the loss who has to contract away your liability. The one making payment only signs so that you can enforce the contract for collection purposes, unless the payer also intends to use the alarm services.
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Ken
Thank you for your articles and advice. I once partially lost a suit because a spouse who was on the deed did not also sign the contract. She claimed had she read the agreement she would not have accepted it.
Joe Sacchetti, Operations Manager
Catskill Branch
Commercial Instruments & Alarm Systems, Inc.
Catskill, New York
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RESPONSE
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If you want to be able to sue the husband and wife then make sure they both signed the agreement. And next time engage us so instead of partially losing you'll partially win.
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ANOTHER QUESTION ON WHO SIGNS CONTRACT
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Ken,
Customer owns several properties held by LLC's. They pay with a check with the specific LLC on it, though sometimes it's a personal check. The customer tells me they are a member of the LLC, I haven't asked for proof of this (should I?) Should the LLC be the subscriber?
Thank you,
Chad
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RESPONSE
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Since the LLC is your end user that is who should sign the agreement. If you get checks from someone other than the LLC then you need to make sure that this other person or entity is not the one using the alarm system, and if it is then it has to sign the agreement. Only problem taking a check from a third party is that if the third party files bankruptcy you might have a trustee come after you claiming that the payments were without consideration since the bankrupt wasn't on the contract and wasn't using the alarm system. Not a frequent problem, but I've done it.
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STANDARD FORM AGREEMENTS EXPLAINED
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Ken,
Can you provide a thorough break down of the contracts/forms you offer. It is difficult to sift through the alarm newsletters trying to piece together the right information. You seem like a very busy person when I call and I'd rather not bother you with simple questions that could be listed on the website. If you could simply provide a more thorough explanation than is currently listed on the contracts page with such things as when you should use a particular contract/form, how, why, why one contract over another, etc.. It gets very confusing and then just when I think you have all the right ones, you mention in you news letter the need for another.
Thank you.
anon
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RESPONSE
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I refer you to the Contract Order Form Page which describes the various contracts. For most of you it's the All in One forms that you should be getting, not the individual agreements that address only some of the services you provide. The All in One forms combine the services you are most likely offering, and even if you're not offering all the services you simply leave that part of the agreement "unchecked" or crossed out. There are 3 essential forms: Residential, Commercial, Commercial Fire. They come in 2 forms, sale or lease. We recommend you get the Disclaimer Notice and use it with the All in One forms.
There are other forms that you may need. Employment Agreement for your employees and Independent Sales Affiliate for your outside 1099 sales people. The Subcontract covers your subcontracting work. Call our Contract Administrator Eileen Wagda at 516 747 6700 x 312. She has the patience of a saint.
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