We have a security system at our office that apparently the contract rolls over with out notification by the security alarm company. When we decided to cancel we were told our contract is not up yet and there would be a cancelation penalty. Is this legal?
Answer
Read The Friendly Contract. The way to deal with "evergreen" clauses is to cancel as soon as you sign (if you choose to sign). Make sure you cancel in the manner specified in the contract.
Answer
Your contract determines the rules.
Answer
In some consumer contracts, automatic renewal clauses are required to be prominently printed and placed. In an alarm-service contract for a commercial client, I am pretty sure there are no particular requirements governing these so-called evergreen (self-renewal) clauses.
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