Can an automatic contract renewal with no notice include a change in terms? NJ
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Can an automatic contract renewal with no notice include a change in terms? NJ
I signed a gym contract in 2017 that included
a 300 cancellation fee. There was no
statement stating that terms can be changed
without notice. The contract renewed
automatically no notice, but that was expect
since it’s not required in New Jersey. I
sought to cancel my contract 2 months into
the new contract and was forwarded a 2018
contract from the vendor with a 600
cancellation fee. I never agreed to the
change in terms prior to or after the
renewal. Is the vendor required to use the
same terms as the previous contract 300
cancellation fee? Did I need to be notified
of the change to the terms of my new
contract?
Asked on August 2, 2018 under Business Law, New Jersey
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Yes, when a contract renews, the same terms are used unless the contract specifically identifies in advance how a term will change (e.g. it has a term or provision stating that "if this contract is renewed, the cancellation fee during any renewal term shall be $600.00"). A contract cannot be changed without the consent or agreement of both parties, which is why if it renews it must renew as is or only with changes spelled out in advance in the contract itself. If there was nothing in the contract you signed about the cancellation fee increasing, you are held only to the cancellation fee in the contract you signed.
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