Consumer Law, Warranties Service Contract Termination after expiration

[og_transfat]

I am a new maintenance manager with a small company. There are existing service contracts for certain large pieces of equipment which cannot be serviced inhouse. There are a total of 4 contracts, representing four physical plant locations.

We are not happy with the contractor's performance. However, in reviewing the contracts we noticed a clause that reads:

"Either party may terminate this agreement at the end of the Fifth year or at the end of any subsequent Five year period by giving the other party at least ninety (90) days prior written notice." (sic)

The original contract was written in 1986, and was signed, on our part, by a person no longer employed here, from a management company that no longer manages this establishment. The original signator on their part was a representative of company that is no longer in business, and had been sold to the present contracting company.

I also note that of four contracts, two (on our copy, at least) do not bear the signature of the other party. Could it be argued that these two contracts are not properly executed (since no counter-signed copy was delivered to us), and thus are void? Or would the contracts be assumed to have been accepted and executed, because work has been done under the contract as if a contract existed?

Does the fact that the original entities no longer exist, or do not represent the principals, give grounds to terminate the contracts?

Is there any other means of terminating these contracts, short of paying 48 months payments, prior to 2011?

 

[calalily]

When was the last date on which you used the service?

 

[og_transfat]

When was the last date on which you used the service?

We use the service regularly. They perform service (or are supposed to) on a Monthly basis.

I have been informed that a recent repair for which we were charged (and paid) should have been covered under the contract as an included amount. I think that this might cause the the contractor to claim that the contract is already void, which would release us. Is this a reasonable expectation?

 

[calalily]

The fact you continue to use the service regularly may imply a continuation of the original contract in five year increments. If the contractor claims the contract is void and requires you to pay; then, get that statement in writing and give them a 90 day notice to terminate. However, it may be in your best interest to seek consul from a lawyer that specializes in business contracts to CYA.

 

[og_transfat]

Thanks. That's pretty much what I thought, but I wanted to make sure I wasn't insane. We will, of course, talk to our own lawyer before taking any action.