Menu
Button: Make a Payment Button: Newsletter Mailing List

Icon: Healthcare LawHands-On Experience

Providing legal advice

and services since 1977

Central Requiring Personal Guarantee. That Customary? / Old And No Contracts Contract Sale Ends Today - January 6, 2017

************************
CAN YOU HEAR THAT?  IT'S THE FAT LADY SINGING.  THE CONTRACT SALE IS OVER TODAY at 3 PM EST.  
*************************
CENTRAL REQUIRING PERSONAL GUARANTEE.  THAT CUSTOMARY?
*************************
Ken 
    We just purchase your Fire  All in One  contract.   We want to sign  up with Centralarm Group of Companies for monitoring.  My lawyer in Maine is stating we are going to be personally liable  is this common with monitoring companies? 
BL
**************************
RESPONSE
**************************
    In my experience it is not common for a central station to require a personal guarantee of the alarm company owner.  In fact, I don't know of any central stations that would require a personal guarantee.  
    I note that Centraalarm Group was, but is no longer, listed on The Alarm Exchange.  You might want to consider a central station on The Alarm Exchange in the Central Station category.
    I should also mention that I have not seen any agreement you have been asked to sign so I don't know if that central station has in fact required a personal guarantee.  
    Also, there may be other circumstances that justifies a personal guarantee.  For example, are you getting a large cash incentive to move to this central station in exchange for a promise to add a minimum number of accounts or stay a minimum number of years?  In that case your personal guarantee, at least to meet those minimums, may be justified.  
    Almost all business people incorporate for the very purpose of avoiding personal liability on corporate contract debt.  A vendor can certainly ask for the personal guarantee and you always have the option of doing business elsewhere.  You may not be able to avoid the guarantee and that's a risk you can decide to take.  People doing business with you are entitled to feel secure and expect to get paid.
************************
OLD OR NO CONTRACTS - TERMS OF SERVICE SUFFICE?
*************************
Ken,
    I have recently purchased several of your commercial and residential contracts along with a suite of other forms that accompany those.  I had also purchased the All in One about 3 years ago which we have been using.  I understand the importance of having every customer sign a contract. 
    My question is what do we do with really old accounts that:
1 - We have extremely old paper,  some date back into the 1980’s and they refuse to sign a new contract.
2 -  We have no paper and they refuse to sign anything?
    Is our only remedy to refuse service if they won’t sign?
    Is there any way to do like the credit card companies and say these are our terms and conditions and by using our service you agree to this even if you don’t sign?
Thanks,
name withheld
***********************
RESPONSE
***********************
    Tough spot.  It's the new year and it's time to decide if you want to do things right or keep taking chances.  What's your level of tolerance for risk?  What risk?  At the very least not growing any equity in your business and possibly risking your company and everything else you own.
    Really old paper means that you're in renewal, assuming the contract you have has an automatic renewal provision that is enforceable.  If you are using one of my old forms it will still protect you, but that's like saying a 1996 Oldsmobile that's still running will get you to your next destination.   You really have to look at these subscribers carefully, check their contracts, and determine if you're adequately protected, and "adequate" is the best you're hoping for.  You need to figure out how to upgrade the systems and get a new contract signed.
    No contract is a real problem.  You need to terminate these subscribers.  You can try selling them first to someone with a higher risk tolerance level than you have.  [or someone dumber].  You're not likely to get more than 10 times and you will have trouble finding anyone to take them over.  Probably whoever does take them over will give them about 5 minutes to sign a new contract before terminating them; same thing you should be doing.  
    If you do decide to terminate a subscriber make sure the subscriber has not paid beyond the date you pick for termination of services.  If you're monitoring then you should not perform any repair service, or inspection, unless a contract gets signed.  
    Be sure you have insurance with E&O in place and make sure your carrier isn't going to give you a hard time if you don't have contracts.  This is really a disaster waiting to happen.  You'd be wise to take corrective measures now rather than waiting until you have a claim that you won't be able to easily defend or you decide to sell your accounts and find out you have little or nothing to sell.
    Today happens to be the last day of the Contract Sale.  Take advantage of the sale.  You only have a few hours to go.
************************
2017 contracts  are ON SALE NOW - see sale announcement
*****************
    The Standard Form Agreements have been updated for 2017.  We've added a non-disparagement provision.  We added a liquidated damage provision when the installation is delayed by the subscriber or others. We modified the monthly payment provision for services so that you have option to give one lump sum instead of separate charges. Fire Protection contract inspection provision was modified in several ways.  Retention of ownership of decals and yard signs was added.  Warning on audio and video added.  Fire All in One added provision to deal with inconsistent agreements.  Other changes have been made and you should check with our Contract Administrator Eileen Wagda at 516 747 6700 ext 312 to see if your form needs updating.  We starting adding the updates several months ago so you may be up to date.  Keep in mind that our updates are free for 6 months and half price for 12 months.  Updates will be prepared and sent out after the new orders are processed.  The sale ends January 6, 2017, so please be patient.  

******************
notice of contract sale - order at www.alarmcontracts.com [you don't need a lawyer to figure this out - order during the sale and save thousands of dollars - call our Contract Administrator Eileen Wagda at 516 747 6700 x 312 for assistance]
*******************
    Contract sale runs through January 6, 2017, ending at 3 PM.  The discount will be accepted on all orders received between now and January 6, 2017 by 3 PM*.  This will definitely be the best deal of 2017.  Here's the deal:
    Buy 1 Residential, Commercial or Fire All in One and get $100 off and $25 off Disclaimer Notice
    Buy 2 All in One forms and get $100 off first and $200 off second and $50 off Disclaimer Notice and $100 off alarm.com rider.   Save up to $450.
    Buy 3 or more All in One forms and get same as above and $300 off the third form and $400 off the fourth form.  Save up to $1150.00 [Residential, Commercial, Fire, Home Automation]
    Commercial Mobile Surveillance Lease $1000.  Save $500
    The Fire All in One with Security Rider $1250.00.  Save $400.00  Add the Commercial Fire All in One and the Commercial All in One and get $200 off each.  Save $800.00
    Qualifier Agreement  $1200.00   Save $300.00
    Nationwide DIY with monitoring.  $3500.00  Save $1000.00**
    Nationwide PERS with or without GPS tracking.  $3500.00  Save $1000.00**
* Your order must be placed on line at www.alarmcontracts.com and received by our office no later than January 6, 2017 by 3 PM EST.  Orders must contain valid credit card payment.  Fill out the order form, add up your charges (we will check the arithmetic) and put in "promo" after your total.  Orders arriving after sale ends will be returned or with your approval charged regular published rates.  Orders will be processed in order received.  Rush orders, delivered by email within 48 hours, add 15%.
** Does not include consultation or modification
**********
What's our Guarantee policy re updates?
    Free updates within 6 months of purchase*
    Half price within 6 months to 1 year*
* applies to original purchase only
To check if you need or are entitled to an update contact our Contract Administrator Eileen Wagda at 516 747 6700 x 312.  Free Update orders are processed after discounted or full price orders.