What are my rights if my alarm company sold their accounts to another company?

UPDATED: Oct 16, 2011

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What are my rights if my alarm company sold their accounts to another company?

I had a contract with an alarm monitoring company. The contract did not contain any survivability, assignment, or anything. They sold their accounts to another company. I continued using the new company for a couple months and then decided to cancel my service. The new company claims that I cannot cancel the service without paying an early termination fee. They are trying to enforce the contract that I originally had with the original monitoring company. I have relayed to them that the they have no right to the original contract terms as it was with a different company.

Asked on October 16, 2011 under Business Law, Washington


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If you have a written agreement with your former alarm monitoring company, you need to carefully read its terms and conditions in that it controls the obligations owed you and vice versa in the absence of conflicting state law. Read the agreement carefully as to any ability of the service to be assigned to a third person.

Im many service contracts a person enters into the agreement with the specific service provider and the service contract is not typically binding upon all parties if the agreement is assigned for further services which you are facing in your situation. In fact, there has been many court decisions holding that such personal service agreements are not binding upon the sale of the service company.

This is what I suspect with respect to your service company contract. You should be able to cancel the agreement due to poor performance and not have to pay any early termination fee.

Good luck. 

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