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alarm co can't provide service / investor seeks advice
May 18, 2019
alarm co can't provide service
    I have a question for you. If a monitoring company does not have a tech to service the alarm does the customer have the right to cancel their contract?
name withheld
    Odd question. When an alarm company contracts to provide services it has a duty to perform those services. If unable to perform the services the alarm company would be in breach.     When one party breaches the agreement the non-breaching party is permitted to terminate the contract, and recover damages for the breach. The damages would be to "cover" the breached contract, and would be the difference between what the party actual paid to cover the performance less what would have been paid. So if the alarm doesn't work, and it's under a service plan, and the alarm company won't or can't perform the repair, the subscriber can engage another alarm company and recover the difference between what it would have paid the original alarm company and what it paid the new alarm company.
    But, I don't know that the alarm company is under any obligation to repair the system. If the contract is only for monitoring, or if the repair is on a per call basis, then the alarm company has no duty to repair the system and the subscriber can't cancel the monitoring contract.
    I can't really opine because I have no idea what contract was signed. If it's not the Standard Form All in One I don't want to know. 
investor seeks advice
    I am an investor and I'm looking at buying a book of accounts from a local alarm company. I have no experience in the industry this is just a money play for me. The company I am buying the accounts from suggested I contact you for some issues before I move forward.
    I'm only buying the recurring revenue and I'm hiring the seller to service the customers, so do I need a NYS Alarm License or because he will be servicing the accounts can we leave it under his license. I will be billing the customers using his name but the payments will go to my office and I will have a DBA with his name. Also what type of management agreement will I need with the seller to service the accounts.
  Name Withheld
    It's not clear what you are buying. If you're buying the alarm contracts, the subscribers will be your customers. In NY you don't need a license to monitor alarm accounts. You will need a license to perform any repair work, but you are not contracting for service. Apparently the seller of the accounts will continue to provide service to the customers. Hopefully he will have a contract with the customers to provide the repair service.
    Whatever name the seller has you can have the seller change its name and then you can DBA your company using that name.
It's a good thing this is play money because you'll need a little more of it to buy Standard Form Agreements and join the Concierge Program. E&O coverage too.

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Ken Kirschenbaum,Esq
Kirschenbaum & Kirschenbaum PC
Attorneys at Law
200 Garden City Plaza
Garden City, NY 11530
516 747 6700 x 301