QUESTION:
Ken:
I have notices on the back of our service tickets regarding the Service Call Warranty, Additional Equipment Warranty, Insurance Coverage (we are not an insurer), Limitations of Liability clause, Third Party Indemnification and Digital Communications.
Is this a good practice?
I had read somewhere a long time ago, that by adding these clauses when the customer signs the service ticket they are signing a "new contract" only this "contract" has no time associated with it, therefore, we are creating problems for ourselves if we do need to enforce the "original contract". Would that be correct?
Thank you,
Brenda
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ANSWER:
In order to have a binding - which means enforceable - contract, you need, at the very least, a meeting of the minds. In other words, each party to the contract should be familiar with, understand and consent to the terms. [don't panic - the law deems those criteria met, at least until rebutted, when someone signs the contract]. Service slips are not the best way to protect yourself. You need a Service Contract - www.alarmcontracts.com.
The Service Contract has the option for "per call" relationship or "recurring revenue" relationship. In either case, all service performed after the Service Contract is signed is covered by that contract, and you are protected by the protective provisions, including exculpatory clause, limitation of liability clause, indemnity clause, insurance procurement clause, and waiver of subrogation clause. Additionally, the scope of your service duty is defined.
There are problems with Service Slips [which I also offer, but don't prefer over the Service Contract]. First issue - can you have terms on a back page that is not signed? Yes, provided the front page, which is signed, refers to the back page terms in a conspicuous way. Second - a Service Slip is probably signed after the work is performed, if signed at all. In that case the subscriber is agreeing to terms after the fact, not in advance. That may affect the enforcement of terms, especially if not worded properly.
Whether a "Service Ticket" is a new contract would depend upon its wording. Since I haven't [and don't want to] seen the Service Ticket used by Brenda's company I don't know how it impacts upon the alarm contract. My guess is that it doesn't since it doesn't sound like it supercedes an existing contract, especially one that does not address service.
Keep in mind that the Sales contract covers just sale and installation, not service. It will cover warranty work, but not other service work. Also, a Monitoring Contract doesn't not cover service of the system, only the communication software [which should not require service once programmed].
In summary, if you refuse to use Service Contracts then a Service Slip is better than nothing. Even with the Service Contract I recommend using the Completion Certificate.