California  |  Consumer Law

Legal Question

Asked on: 7/12/13, 4:07 pm

I had a home security service for alarm monitoring for 25 years that sold to a larger company in February 2013. The invoicing was semi-annually due July and January for 25 years. In April 2006, the original company had presented me with a contract that revised the contract period to yearly automatic renewal in April with semi-annual payments on July and January. Boilerplate that I didn't really dwell on. I called the new servicer July 1 to cancel service when the bill would be payable. The contract is healined with NON-ASSIGNABLE AGREEMENT across the back page.

Question: I do not want this new security company, but they say I'm am contracted until April 2114. Do I have to deal with this new company that was not my chosen servicer? They are demanding 9 months service charge to April 2114.

Question: Item #15 says this agreement may only be altered or modified by an agreement in writing by both parties. If I do not want a relationship with this new company, am I forced to by contract?

Google brought up many confirming points that the contract is not enforceable by an assuming party.

It's not large money, but I'd love to know my rights. Should a consumer have to receive a personal service from a party other than who they contracted with under a NON-ASSIGNABLE AGREEMENT? Is this only working against the consumer? Am I required to sell my property with assumption of the contract by the purchaser? What if they chose another alarm company?

Richard West

1 Answer

Answered on: 7/13/13, 6:22 am by Carl Starrett

What isn't clear is whether or not your contract was in fact assumed by another company or if the original company is not considered part of the new company. If you have a contract with alarm company A which then merges with alarm company B, my initial reaction would be that that the contract is valid. If B simply purchased the assets of A and A simply went out of business, then you might have a stronger argument.

The proverbial devil is in the details and I can tell from you post what exactly happened between A and B.

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Law Offices of Carl H. Starrett II 1941-C Friendship Drive El Cajon, CA 92020-1144

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