Legal Question in Consumer Law in California

The validity of Automatic Renewal Clauses in Service Contracts

I had an alarm system installed in my home in California. Subsequently, my wife and I were divorced and we sold the house. I continued to make payments to the alarm service company to honor the balance of the contract I signed. I then sent them a Certified letter advising that I no longer owned the home,had finished paying for my obligation, and wanted to cancel services. They have advised me that my contract had an automatic renewal clause and they did not receive my letter of cancellation in time, so according to them, my contract has automatically renewed and I must keep paying. How can I be liable for a contract for services that I can never use because I don't live in the house anymore?


Asked on 6/25/02, 8:56 pm

1 Answer from Attorneys
Geoffrey G. Gussis, Esq. Riker, Danzig LLP

Re: The validity of Automatic Renewal Clauses in Service Contracts

Renewals are common in these kinds of contracts and are usually enforceable. Check your contract to see if you can move the system to your new place - they usually let you do this.

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Answered on 6/26/02, 9:41 am


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