KEN KIRSCHENBAUM, ESQ ALARM - SECURITY INDUSTRY LEGAL EMAIL NEWSLETTER / THE ALARM EXCHANGE You can read all of our articles on our website. Having trouble getting our emails? Change your spam controls and white list ken@kirschenbaumesq.com ****************************** What if you really did make a mistake on your estimate June 16, 2022 ********************** What if you really did make a mistake on your estimate ********************** Ken We entered into a Commercial All in One for security system, intrusion and access control. We agreed to install equipment in areas of the premises which we now find, after the contract is signed, we won’t be able to install the components for one reason or another. It’s our mistake. Is there anything in our contract or that you can suggest to deal with this issue. Right now the customer wants us to install the system or return the contract deposit. Anon ************************* Response ************************* There are legal principles that come to mind. Mutuality of mistake means that both parties to the contract made a mistake; the contract is voidable by either without penalty. But when one party makes a mistake and there is no wrongdoing by the other party, the contract is not voidable. The party making the mistake has to eat it or suffer the consequence of breach of contract. In an alarm contract setting an alarm company who breaches the contract can expect to have to pay a customer the cost of “cover”, which means the cost the customer incurs replacing the first alarm company. So if you agree to install a system for $5000 and do nothing, and the customer replaces you with another alarm company for the exact system and pays $6000, your damages are likely $1000. The Limitation of Liability provision in your Standard Form Agreement may reduce your exposure. If the customer concealed material facts from you that would have changed your estimate then you won’t be held accountable for the mistake you made. In the scenario above, sounds like the customer is willing to let you off the hook, out of the contract, if you return the deposit. Unless you want to eat the added expense you should accept the customer’s proposal. *********************** To order up to date Standard Form Alarm / Security / Fire and related Agreements click here: www.alarmcontracts.com *************************** CONCIERGE LAWYER SERVICE PROGRAM FOR THE ALARM INDUSTRY - You can check out the program and sign up here: https://www.kirschenbaumesq.com/page/concierge or contact our Program Coordinator Stacy Spector, Esq at 516 747 6700 x 304. *********************** ALARM ARTICLES: You can always read our Articles on our website at ww.kirschenbaumesq.com/page/alarm-articles updated daily ******************** THE ALARM EXCHANGE - the alarm industries leading classified and business exchange - updated daily ************************* Wondering how much your alarm company is worth? Click here: https://www.kirschenbaumesq.com/page/what-is-my-alarm-company-worth ****************************** Getting on our Email List / Email Articles archived: Many of you are forwarding these emails to friends or asking that others be added to the list. Sign up for our daily newsletter here: Sign Up. You can read articles and order alarm contracts on our web site www.alarmcontracts.com ************************** Ken Kirschenbaum,Esq Kirschenbaum & Kirschenbaum PC Attorneys at Law 200 Garden City Plaza Garden City, NY 11530 516 747 6700 x 301 ken@kirschenbaumesq.com www.KirschenbaumEsq.com
