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QUESTIONS ON CONTRACT PROVISIONS
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Ken
    We have a customer who is asking some questions about the Commercial All in One Agreement.   I need some help responding back to a couple of his concerns. 

  • Item 15 - Delay in Installation - we are not responsible for our negligence?
  • Item 21 -  Indemnity -  if we are negligent the subscriber has to indemnity us from claims?
  • Item 25 - Legal Action - Subscriber is making the upfront investment;  why is there a liquidated damage clause?
  • item 29 - Security Interest - This is not a high credit deal...

    Thanks 
AT
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RESPONSE
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    The Delay in Installation provision is fairly common in construction agreements.  It's especially important in security agreements because you don't want your subscriber claiming that it suffered a loss just because you didn't get the alarm in on time.  Even though such speculation and conjecture probably would make a lawsuit difficult, you don't need the aggravation.  So no liability if the system isn't installed timely.
    Indemnity is common in alarm security agreement, though because I know you have insurance I'll often recommend that you delete the indemnity protection if you have to save your deal.  There are other provisions in the agreement to protect you.
    If there are no RMR items then you won't need the liquidated damage provision.  You will need the Legal Action paragraph if the subscriber doesn't pay for the installation.  I assume this is a sale with no RMR [which is unfortunate since you should have been able to sell monitoring, service and inspection].
    Security Interest.  If no RMR then you won't likely need the security interest provision, and you're also very unlikely to ever use this provision.  
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what's LOI
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Ken
    I've been seeing LOl's in your articles, but I don't see any definitions for this word, as it has many different definitions.  Loss of Life, Limit of liability, and even Lawyers on Line to name a few.
    But if I'd have to guess, I would say Limit of Liability am I correct sir, if not please elaborate so I can
properly follow your wonderful newsletter.
    Kind Regards
R
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RESPONSE
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    LOI as used in the articles means Letter of Intent, not to be confused with LOL, which means laughing out loud in Texting language
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CCTV AGREEMENT COVERS OFF-SITE CLOUD VIDEO STORAGE
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Ken,
    Does the CCTV agreement covers off-site cloud video storage?
Raz 
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Response
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    Yes the CCTV agreement covers off site cloud video storage.  So does the All in One [residential or commercial] and your money is much better spent on the All in One Agreements rather than the more limited CCTV form.  Though up to date the CCTV form is limited to video application, so unless that is all you do, the All in One is a better investment.  The All in One covers all security,  including the cameras.
    Off site storage is an important service [for you] because it lends itself to RMR [recurring monthly revenue].  Setting up a local DVR on site doesn't offer the RMR option, at least not for storage.