QUESTION:

  Ken, We are currently monitoring and maintaining (Maintenance contracts) all the fire systems, burglar systems and guardhouse communication receivers for a gated community. They indicated they will not be renewing these monitoring and maintenance contracts in January. What should we require from them in writing so that we are not liable for any situation that may occur when we are no longer maintaining their equipment?

Maria

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ANSWER:

  The question assumes that you can get anything in writing from the subscriber.  Alarm / security contracts usually provide for a term and often renewal, but rarely address expiration of the contract, other than to permit the removal of the equipment if leased. When the equipment is owned by the subscriber then all you need do is access the system to delete communication programming so the central station is not inundated with signals. 

   There is no contractual requirement that you do anything once the contract expires by its own terms.  You could simply stop all services.  It would be prudent, however, to communicate with the subscriber advising that the term of the contract has come to an end and that your services will stop.  More than likely you have tried to get a new contract so a letter advising that you are stopping services won't be the first notice to the subscriber that the relationship is coming to an end.

    If you are sending a final letter of termination make sure it is unequivocal and unconditional, so that there is no confusion as to whether you are stopping your service.  If it's a service contract then your refusal to come and service will be notice, but if you are monitoring then the subscriber should not be left with any plausible idea that you are continuing to monitor.  A simple letter to the subscriber confirming termination of your service, either at the subscriber's election or yours, will be enough.  Unless you have a provision in your contract that requires particular mode of service, a regular letter by first class mail is fine.  Don't waste your time and money on certified mail.  Keep a copy of the letter and make a note who actually mailed it and when.