Sorry, but integrators cannot decide ‘at will’ to just terminate a service or alarm monitoring contract with an unruly client. But there are other options you can take for ‘pain-in-the-butt’ customers under a service contract.
Every integrator has had an unruly client that you just want to get rid of. But as integrators move toward developing more recurring monthly revenue (RMR), they will find that it’s a lot easier to get rid of a client during the installation phase than it is during the service phase.
According to legal expert Ken Kirschenbaum of Kirschenbaum & Kirschenbaum and columnist for CE Pro‘s sister publication Security Sales & Integration, a dealer cannot just simply decide “at will” that he no longer wants to service a difficult client… just the same as the customer cannot decide with impunity to cancel the contract.
In fact, Kirschenbaum says any provision in a service contract that “permits one side to terminate ‘at will’ and without penalty probably renders the agreement illusory, and illusory agreements are unenforceable in the sense that both sides will be permitted to terminate at will,” he says, noting that to his knowledge only government contracts legally contain provisions like that which permit the government to simply cancel a contract and pay the contractor only for work performed with no future profit or damages.
Article Published By Jason Knott on CE Pro, December 29, 2014
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