Regarding an auto renewal evergreen clause, if a client failed to give a 30 day notice to cancel the service agreement on their copier, can the dealer force payment for the remaining 10 months of the annual conract?

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Regarding an auto renewal evergreen clause, if a client failed to give a 30 day notice to cancel the service agreement on their copier, can the dealer force payment for the remaining 10 months of the annual conract?

This even if the church no longer uses the copier? In other words, there is no longer any expense whatsoever to the copier dealer at this point.

Asked on January 2, 2019 under Business Law, Tennessee

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

If the customer/client failed to provide the notice required by the contract to cancel, the contract will renew for another term (e.g. another year) and will be enforceable against the client; the client will have to pay the amounts the client agreed to pay in the contract (e.g. for another 10 months, to the end of the year).


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