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Q: Contract law ( No Answer,   0 Comments )
Question  
Subject: Contract law
Category: Business and Money > Small Businesses
Asked by: java182-ga
List Price: $10.00
Posted: 19 Apr 2005 12:20 PDT
Expires: 19 May 2005 12:20 PDT
Question ID: 511452
I live in NJ USA.  for many years i have had YP directory ad and at
some point, more than 10 years ago, i think I signed some kind of
agreement or contract with Verizon for this ad.  Then every year
around renewal time I would receive a call asking if i want to renew
the ad for the next year, but last year i didn't receive a call.  I
didn't want to renew the ad anyway,but forgot to contact them.  my ad
was entered in the directory and they are now asking for almost $1000
to pay for it.  they claim that all of their contracts have an
automatic renewal clause putting the burden on me to cancel the ad.  I
don't have a copy of the contract.  how long can a contract such as
this be in force?

Request for Question Clarification by legolas-ga on 20 Apr 2005 09:53 PDT
This agreement would fall under the statute of frauds. In this case,
each 'renewal' probably became a new contract. In addition, there was
an original contract that stated that it would be renewed each year
automatically.

Therefore, we've met the burden of having to have the initial contract
in writing, modifications to the contract can be verbal or in writing
(also consistent with the Statute of frauds), and the contract allowed
for renewal each year, which presumably created a 'new contract' and,
hence started this all over again.

Bottom line is: you probably owe them $1000. I'd send a registered
letter with return receipt (just to be safe) to them requesting it be
cancelled for the next year. UNLESS the contract states that Verizon
must contact you prior to renewal, then, you may be good.. But, I
somehow doubt it says that...

Contracts can stay in force for decades. Most contracts have some sort
of 99-year expiry date to comply with other regulations, but, we're
talking only about 10+ years here.. Think: your home loan is probably
a 30 year contract...

Legolas-ga

Clarification of Question by java182-ga on 20 Apr 2005 19:17 PDT
thanks.  what do you need me to clarify?

Request for Question Clarification by legolas-ga on 21 Apr 2005 08:45 PDT
There's no real need to clarify.. Normally when I have an 'answer' for
someone, but, don't really feel like writing it up with links and
proper research, I'll post it in the Clarification section. The reason
for that is that you will be notified that someone has touched your
question, and there is new activity there. In this case, if you think
the answer completely answers your question, I can post it as such,
or, if you prefer a slightly more flushed-out answer, another
researcher might provide a more detailed answer.

Thanks,

Legolas-ga

Request for Question Clarification by taxmama-ga on 25 Apr 2005 09:55 PDT
Legolas is quite right. So you may want to have Legolas post the answer.

However, there is one way to get out of the obligation. 

If you have closed your business - and didn't intend to renew
the ad, you could get a judgment in your favor if you go to 
court. 

On the other hand, if the phone company has established a 
history of ALWAYS calling you about the renewal, and this 
year they did not, you could argue in court that you relied
on that. Small claims judges (or commissioners) tend to be
more lenient at interpreting contracts in your favor. I have
seen them lash out at phone companies for the way they handle
their billing and contracts. Some of them have been burned,too
and they are biased. 

It IS a gamble...but if you lose, you'll pay the bill and
the judgment won't go on your credit. But...being past due
will - unless you follow Legolas- advice and notify them 
in writing that this is in dispute - and that you don't want
it appear as a past-due bill until it is adjudicated.

Just thought you'd like to know. 

Best wishes

Your TaxMama-ga

Clarification of Question by java182-ga on 25 Apr 2005 14:40 PDT
Legolas, please do post your reply. Thank you for your help. 

Taxmama--I haven't closed my business, so do I understand correctly
that it would not be feasible to get a judgment because I still need
to have a one-line listing in the phone book?  BTW, how does one get a
jugdment?

thank you both for your replies.
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