What can I do if I signed a contract with a linen company that automatically renews?

Get Legal Help Today

 Secured with SHA-256 Encryption

What can I do if I signed a contract with a linen company that automatically renews?

It was a 5 year contract. The contract was fulfilled but when I went to cancel it in year 6, they have in fine print that it will automatically renew for another 60 months. Is that legal? Do I have to remain with them another 60 months? Do I have any recourse?

Asked on November 4, 2015 under Business Law, North Carolina

Answers:

M.D., Member, California and New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

What you have here is something known as an "evergreen clause". Typically, a company has the opprotunity to cancel a contract but typically has to give notice, for example, about 60 days prior to the end of the initial contract end date. However, frequently the window of opportunity to terminate such agreement passes and the business finds itself on contract for another year or period of years.
In the instance of commercial contracts, courts often strictly construe these situations if the contract language is clear and unambiguous. Therefore, such a contract extends automatically for another term.
A few jurisdictions have passed laws that may make it difficult for vendors to enforce these automatic renewals, however most of these laws apply only to contracts between businesses and consumers. 
Without reading the exact terms of the contract in question it is hard to say more. Right now, you should consult directly with a businss law attorney in your area. They can best advise you as to your rights/remedies under the circumstances.


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 AttorneyPages.com 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.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption