contract

Started by BB5 • 10 replies • 1712 views

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BB5 (Missouri)
Posts: 145

Posted:

We are looking at a contract (1 year ) for maintenance there is a clause in it that if the HOA defaults (doesn't pay)the monthly fee the contract becomes null & void and remaining amout due on the contract must be paid in 30 days. Are most contracts like this ? Should it be signed ?

LarryB13 (Arizona)
Posts: 4,099

Posted:

Well, let's say you sign the contract and after the first month find the service is substandard. You refuse to pay. The contract says you owe him for all 12 months of work but that he does not have to perform any more work. Gee, I wonder who supplied that contract? Does that sound like a contract you want to sign?

BB5 (Missouri)
Posts: 145

Posted:

There is a clause regarding substandard work also the individuals doing the work must be licensed with the DNR. Who would present a contract like this ? When you lease an apt. for a year. When you buy a car or a house if you don't pay for it they take it sell it then come after you for the difference.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

BB5

Giving you a place to live (like you are in it) or a car to drive (like you have and drive it) and contracting to perform a service (you are to perform such and such) are quite different.

In one case you have the goods (apartment/car) to use and like it or not, you are using it.

In the other case, the person wants to be paid even if you do not like the service and say I no longer desire your service. I am not using/keeping anything. I am just no longer using nor paying for such.

Consider a given period of notice clause like either party can cancel with 60 days notice.

LawrenceC1 (Georgia)
Posts: 480

Posted:

BB,

If you have an attorney on retainer it might be worth a half-hour of his or her time to review the contract. A lawyer wil know if this is a standard clause or if it opens your association to unwarranted liability.

MelissaP1 (Alabama)
Posts: 13,836

Posted:

I wouldn't sign this contract. It sounds drafted up by the landscaper. Once entered they could win. So be careful on this. I think this may have happened in my HOA years before I moved in. Heard there was a $40K lawsuit against the HOa because of something similar.

When I fired our landscaper, he pointed out his contract ended in May and NOT April when we hired the new lawncare. So we had to pay BOTH landscapers for that month. it is important to keep an eye on the cancellation date and the proper notice.

Former HOA President

BB5 (Missouri)
Posts: 145

Posted:

First this is not a landscaper these are LICENSED water system operators as required by the state/dnr . Second if the HOA pays it's bills why would it be a problem ? Just trying to convince HOA that hiring someone without this contract would be twice as expensive and licensed operators are very hard to find they are the ones who answer to the DNR if something fails (e-coli)or proper documentation not submitted . The only time there was a problem is when they wanted to do it on the cheap (forgave dues) we ended up with e-coli and a boil order.

JohnC46 (South Carolina)
Posts: 14,265

Posted:

BB5

Might I suggest you put a litle more information in your posts and I refer not to this subject alone.

Hope this helps.

ChrisP5 (Missouri)
Posts: 165

Posted:

I wouldn't recommend that our board approve this contract without negotiating out this language or at least a 30 day termination clause or something to help protect the association from having to pay for months of unused service.

Are you committing to a minimum amount per month in maintenance? Will you always need services every month?

TimB4 (Tennessee)
Posts: 21,059

Posted:

BB5,

We had a contractor we liked that bid on our maintenance contract with a similar clause. We informed them that this clause would keep us from signing the contract. Guess what, they changed it to the following:

8. TERMINATION RIGHTS:

A. [company] reserves the right to cease the performance of services (i) with thirty (30) days prior written notice, if Customer becomes more than thirty (30)days past due on payment for services rendered, or in the case of unreasonable adverse economic occurrence such as, but not limited to, failure to obtain labor due to
immigration action or inability to obtain labor thru the H2B visa program.

B. Customer shall give [company] thirty (30) days written notice with opportunity to cure in the event that it believes that [company] is not in compliance with the terms of this contract (defined as a failure to provide quality performance of the contract) and, if [company] has not cured such breach, then Customer shall have the right to cancel service. The preceding notwithstanding, Customer may cancel service for any reason with thirty days (30) written notice provided that such notice is accompanied with payment in full through date of cancellation.

CarolR11 (Colorado)
Posts: 2,563

Posted:

All of our contracts give us the right to terminate them with or without cause and (usually) 30 days written notice.

Our HOA attorney reviews all major contracts. As Lawrence suggested, spend a 1/2 hour of an attorney's time.

Davis-sterling.com has very nice sections on contracts much of which would apply to any state, not just to CA.

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