Can an automatic contract renewal with no notice include a change in terms? NJ

UPDATED: Oct 1, 2022

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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

Asked on August 2, 2018 under Business Law, New Jersey


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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