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Who Needs To Sign Contract
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Ken
    We often have home or apartment owners who want to buy an alarm system and pay for the system and monitoring, but have told us they will be renting the unit out.  Are supposed to ask for the contract to be signed by the tenant (who will be living there) or is it OK for us to sign the agreement with the payer (the homeowner who wants us to install the system and will pay the monitoring)?
Thank you!
David
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RESPONSE
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    This is a common issue and applies in both commercial and residential situations.  The owner contracting the alarm services is not going to be the actual end user.  The answer is that both the payer and the end user need to be under contract.  Both can claim some rights because both are affected by the services.  Both may have a claim if there is a loss.  The owner is expected to pay and that needs to be established by contract.  
    The end user, tenant, will  be the actual recipient of the services, presumably.  This will certainly be the case if the tenant has security codes, is using the system, can verify alarm conditions and cause the central station not to dispatch. This would show that the tenant expects some benefit, some protection, from the alarm or security services.  Though not paying for the service, at least to the alarm company, the tenant's expectations and relationship with the alarm / security company needs to be established by written contract.  That contract will contain various "protective" provisions that alarm companies rely upon to protect against claims, justified or otherwise.
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How Important Is Additional Insured Requirement
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Ken 
    A prospect wants to move forward, but has asked that I remove in section 8 of the residential All in One that he add my company as an additional insured. He didn’t mention the indemnity provision, but I think he wants the whole paragraph struck. I called Sarrg and they said it’s okay that I don’t have that sentence that they add me to their insurance policy as insured. Can I leave in that they indemnify my even if it doesn’t say that I’m added as an additional insured?
Regards,
Paul Welte, President
Welte Electronic Systems, LLC
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RESPONSE
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    A properly drafted alarm contract, and the Standard Form Agreements are the gold standard, will include an indemnity provision and an insurance procurement clause.  It's interesting that the subscriber has objected to the procurement clause but not the indemnity clause, at least not yet.  This is curious because if the subscriber is indemnifying the alarm company it would be wise to back that indemnity up with insurance; otherwise the subscriber will find itself exposed under its indemnity and having to cover that indemnity out of its own pocket.  
    That works for the alarm company, though there is some risk if the financial condition of the subscriber is unknown.  An indemnity from a broke subscriber isn't going to mean much, whereas if backed by insurance you would expect sufficient coverage.
    The Standard Form Agreements have multiple protective provisions, so that when you give one up the others still provide sufficient protection.  If you don't have the Standard Form Agreements then you don't know what you have, how the various clauses are drafted and how effective the contract will be.  Unless you are a high risk gambler I suggest you get the updated All in One Agreements, today.  And don't make changes if you don't have to.  
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Personal Guarantee
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Ken
    Can the contract provision state that the signatory is also a personal guarantor of the contract?  
    Assuming property manager has previously executed a contract with us, as agent for property owner, and, subsequently the property owner pays service charges with property owner's own check (not paid by prop mgr.), does this evidence property owner's agreement to the contract terms?
ANON
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RESPONSE
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    The general rule is that if you want a personal guarantee you will need a double signature, once as representative of the corporation or other entity, and once as the personal guarantor.
    If the agent signs the contract and the owner subsequently pays that would evince authority for the agent to act for the owner.  However that may not establish the contract or its terms since the owner may not have authorized the agent to enter into the contract and may not have been aware of the written contract when the payment was made.
    If I had a dollar every time someone my office sued claimed the contract was not authorized by the person who signed it I'd have enough money to buy all the Standard Form Agreements.
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                                WEBINARS:  Sign up for any or all of the webinars that interest you.

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FREE Webinar Series "All You Need To Know About" alarm industry issues. 
Register for one or all.  Each presentation scheduled for half hour to hour.  Not recorded.
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Title: All You Need To Know About Automatic Renewal Provisions in Alarm Contracts
When: February 15, 2017 at noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: The why, where and how of automatic renewal provisions in alarm contracts
Who should attend: Alarm company owners, general managers, sales managers, sales staff
Presented by: Ken Kirschenbaum, Esq.
Register here:    https://attendee.gotowebinar.com/register/3498770624606417921
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Title: All You Need To Know About Video Surveillance
When: February 16, 2017 at noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: Discuss latest in video surveillance equipment and services
Who should attend: Alarm company owners, general managers, sales managers, video technicians
Presented by: Ari Erenthal, training manager for IPVM, the leading resource for independent news, reviews, and testing of cameras, VMS, NVRs, and more. (862) 414-3078 ari@ipvideomarket.info
Register here:  https://attendee.gotowebinar.com/register/6264618512556065793
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Title: All You Need To Know About Selecting the Right Broker to Sell Your Alarm Business
When: February 23, 2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about finding the right broker to represent you on the sale of your alarm business
Who should attend: Alarm company owners
Presented by: Ron Davis and Steve Rubin from Davis Mergers and Acquisitions Group, the Graybeards rdavis@graybeardsus.com srubin@graybeardsus.com
Register here:   https://attendee.gotowebinar.com/register/8548769256865453057
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Title: All You Need To Know About modern nationwide central station operations and how to select the best central station for your needs
When: February 24, 2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about what you should expect from your modern nationwide central station and how to select the best central station for your needs
Who should attend: Alarm company owners, general managers, sales managers, sales staff
Presented by: Morgan Hertel from Rapid Response MHertel@rrms.com
Register here:   https://attendee.gotowebinar.com/register/507826318172222465
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Title: All You Need To Know About Fire Alarm Systems and Taking Over Fire Alarm Systems
When: March 1, 2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about issues to consider when installing, servicing or inspecting fire alarm and when taking over an existing system
Who should attend: Alarm company owners, general managers, sales managers, technician managers
Presented by: Jeff Zwirn JeffZwirn@alarmexpert.com
Register here:   https://attendee.gotowebinar.com/register/4756737271107996417
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Title: All You Need To Know About Standard Fire Protection All in One Agreement Covering Installation, Inspection, Service of Sprinkler System, Portable Extinguishers, Kitchen Hood, Smoke Detectors, Fire Pump
When: March 2, 2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about the Standard Fire Protection All in One provisions including scope of work, liability limitations, insurance issues, indemnity issues, how to handle subscribers who won't sign or want you to sign their agreement. 
Who should attend: Alarm company owners, general managers, sales managers, sales staff
Presented by: Ken Kirschenbaum, Esq.
Register here:   https://attendee.gotowebinar.com/register/658147149875346945
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Title: All You Need To Know About Alarm Licensing and Contracts for DIY 
When: March 9, 2017 noon EST
Where: Your computer for power point, live video and call in on computer or phone
What will be covered: General discussion about licensing in the alarm industry for DYI. Different types of licenses, where you need them and how you get them. How and when to use License Holders or Qualifiers for your business and how to become a license holder for a company. Risks involved in not being licensed. Contract you will need for nationwide DIY monitoring agreements.
Who should attend: Alarm company owners, general managers, compliance managers and license holders.
Presented by: Ken Kirschenbaum, Esq.
Register here:   https://attendee.gotowebinar.com/register/2585168820901654273
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