***********

Question:

************

Ken

    I have a customer that is not under contract anymore and does not want to pay for the monitoring because he said the alarm has not worked in 5 months.  He also does not want to pay for a service call.  What can I do?   Can I just cancel him and walk away?

    Do you have some kind of letter I can use to cancel him.  Please advise

Thanks Anthony

********

Answer:

*******

    Even if a subscriber is not under contract, the subscriber may have some expectation of services from you based on past performance.  Obviously you don't owe this subscriber anything more than a communication that you are no longer providing any services.  A letter, fax or email would be sufficient notice.  A preserved recorded telephone call is also sufficient. 

    I am hesitant to recommend that you put a notice on the keypad, "no monitoring" or something like that, because it seems that your subscriber owns the system and you don't have any right to tamper with it. 

    If the subscriber is under contract then make sure you comply with any contractual notice that may be required before terminating services, especially monitoring. 

    Also keep in mind that some jurisdictions require you to notify the AHJ that you are terminating monitoring or inspection services [typically commercial fire alarm systems].

*************

another Question:

***********

Ken,

    Our old contracts have a Right To Terminate clause which states

    “ Notwithstanding anything contained herein to the contrary, the Alarm Company may, at its sole discretion, terminate this Agreement, with or without ccause and without any liability whatsoever, upon thirty days written notice to the Subscriber.  In the event such termination is without cause, the Alarm Company shall, upon written request from the Subscriber, refund any unearned charges.”

    We just recently purchased your contracts, and I cannot find the above clause or something similar in your contracts.  

Please advise.

Thanks,

Elizabeth Wargacki

Merchants Alarm Systems

Wallington, NJ

**********

Answer:

********

    None of my Standard Alarm Contracts permit the alarm company to terminate for no reason at all.  There are provisions permitting suspension or termination, but there are stated reasons, such as impossibility of performance [i.e., central station unable to monitor].  In my opinion a contract that permits the alarm company to cancel for no reason creates an illusory contract; one that would not be enforceable.

    I know of "termination for convenience" provisions in public works projects or government contracts.  I believe those provisions are permitted because those projects can lose funding or other governmental issues may arise, and guidelines exist specifying requirements for such a provision to be held valid.