QUESTION:
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Hello Ken,
I have a customer who I should have never agreed to monitor or install a security system for. He is under contract for several years, and I feel I have obligations as well under the same contract to continue the service. But for the following reasons I feel I can breach my end of the contract:
1) Apparently he had brain damage when he was young and lives on Social Security and may not be legally able to sign legal documents. His family has indicated he will not sign any additional papers (in this case alarm permit renewal application required for the county).
2) Ability to make monthly on- time payments.
3) None of the people (family members) he listed on his party list to be contacted in case of an alarm wish to be involved in any way and have been asked to be removed from the list.
4) He lives with his father who owns the home who does not wish to continue the use of the security system.
5) He also no longer understands the proper operation of the security system (arming & disarming, use of security code etc.)
Can I send written notice and cancel the contract?
Jan
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ANSWER:
You ask if you can "breach" your contract. The answer of course is you may breach the contract if you like. You will be subject to damages for breach of contract should the non defaulting party wish to pursue damages. Those damages will be the difference between what you agreed to perform the service for and what the non defaulting party had to pay to get the service for the duration of your contract term.
But you may not have to "breach" because you may have the right to terminate the contract. It sounds like your subscriber is not paying on time and not using the system properly, presuming setting off false alarms. Hopefully you are using my contracts - and if not let me remind you to get them today at www.alarmcontracts.com - and if you are then the contracts give you plenty of ways to cancel without breach.
You should send notice that you can no longer provide the services and suggest that the subscriber engage another alarm company. Perhaps you have a few competitors near you that you don't like and you can refer the subscriber to them.