Be Careful of the word RENEWAL in Legal Contracts
Most legal contracts do not have a continuous agreement between 2 parties. When the services provided are continual such as property management legal contracts then it is important to read every line in the contract. I know most people will not read it.
After talking to my client who wanted OUT from her property management contract we realized she is unable to for another year. Because the contract she signed is continual. Not only is it continual the start and end dates are written purposely to throw you off.
Below is the under the ‘TERMS’ section of the contract.
The term of this agreement shall be for an initial period of 1 years beginning on March 30, 2012 and ending April 1, 2013. Unless earlier year each, unless either party gives the other 30 days written notice of non-renewal.
In order to cancel this contract the parties must give notice 30 days prior to April 1st of each year. Otherwise the contracts renew itself for another year. Of course the parties have the right to cancel and pay the penalties for cancellation.
Therefore it is worth the time upfront to read ANY contracts carefully even it does take one or two hours. It can save you hundreds of dollars and time later on!