Automatic renewal statement in contracts

[isasir]

Say there's a contract that lasts for a year, but has a section in it that indicates that the contract will automatically get renewed unless you cancel with 30 days notice.

If I forget to cancel within the 30 days, am I legally binded to the contract for the next year? Or, does it just mean that they'll automatically bill me, but I still have a right to cancel?

 

[Vegitto]

I don't know the legal issues here, but I know that every time they automatically renew your contract and you want out, they get fussy.

 

[archiloco]

dunno, most likely you binded if you past the 30 day thing they state in their contract, or you can tell them to pro-rate you wanting to cancel.

 

[Golgatha]

I used to use a credit card random number generator for those types of things Online. The best example was Fileplanet.com. I'd give them a random number and let it expire after 1month. Once the year rolled around and it tried to auto-renew they'd send an email saying they needed a new payment method or it would be cancelled. The next email would be we miss you and we'll let you renew for half price. Did this for 3-4years, but the buyout they had a few years ago killed that deal.

 

[isasir]

Originally posted by: Golgatha
I used to use a credit card random number generator for those types of things Online. The best example was Fileplanet.com. I'd give them a random number and let it expire after 1month. Once the year rolled around and it tried to auto-renew they'd send an email saying they needed a new payment method or it would be cancelled. The next email would be we miss you and we'll let you renew for half price. Did this for 3-4years, but the buyout they had a few years ago killed that deal.

Yeah, online renewal avoidance is easy enough. My question though concerns business service agreement contracts that I foolishly overlooked...

 

[kranky]

If the contract renews, it is renewed. Once it's renewed, your committed just like you were in the first year. Then your right to get out of the contract depends on what the contract says.

But in reality, it will depend on the company. Some will just drop you if you don't pay and let it go at that. Others will take you to court to force you to pay and live up to the contract because you didn't cancel within the 30 day period.

If it's a home security company, expect to be forced to pay.