3 year contract

GlenM4 (Tennessee)
Posts: 141

Posted:

We had a board member sign up for online payment system. (which i disagreed with from start but that's a different story. )

At the time the board member had 2 friends on the board and they voted yes (via cell phone) with out seeing any documents or contracts ect.. Now the cost of the online system is way to high and no one is even using it. paying about 80$ per month for nothing. So I made motion to cancel the online pay system. I had a 2nd. After that the board member that signed us up said we could not cancel cause it was a 3 year contract. And according to our CCRs it clearly states that we can not have any contract over 1 year. So my question is can they hold us to a 3 year contract?

thanks

RichardP13 (California)
Posts: 3,868

Posted:

Two options

1) Divide the amount among the three that voted for it and have them pay for it until the contract expires, or

2) Contact an attorney

SueW6 (Michigan)
Posts: 814

Posted:

"They" (the company) don't care what's in your bylaws.

Ask your lawyer to get you out of this contract. But be warned it might cost you just as much as the $80 per month.

PS - WHO signed the contract? The entire Board is at fault for not doing its due diligence in reading the terms of this three year contract.

Just out of curiosity - what is "too much" cost for this service? Usually these kinds of services take a percentage of the payment transaction, not by the month.

GlenM4 (Tennessee)
Posts: 141

Posted:

Quote:

Posted By SueW6 on 11/06/2018 1:33 PM
"They" (the company) don't care what's in your bylaws.

Ask your lawyer to get you out of this contract. But be warned it might cost you just as much as the $80 per month.

PS - WHO signed the contract? The entire Board is at fault for not doing its due diligence in reading the terms of this three year contract.

Just out of curiosity - what is "too much" cost for this service? Usually these kinds of services take a percentage of the payment transaction, not by the month.

The treasure signed there name on it as the president , no idea why and cant say its entire boards fault , as i am on the board and i said 1) we can not vote over phone, and 2)where are the documents.. by that time 2 of his/her friends on the board said "i vote yes" ... "we have 3 yes so do it".

any cost is too much lol, we had 1 person use it in a year. right now they charge us 80 per month, unless they make more then 80 off the fees they charge us.

RichardP13 (California)
Posts: 3,868

Posted:

Quote:

Posted By GlenM4 on 11/06/2018 4:04 PM

Posted By SueW6 on 11/06/2018 1:33 PM
"They" (the company) don't care what's in your bylaws.

Ask your lawyer to get you out of this contract. But be warned it might cost you just as much as the $80 per month.

PS - WHO signed the contract? The entire Board is at fault for not doing its due diligence in reading the terms of this three year contract.

Just out of curiosity - what is "too much" cost for this service? Usually these kinds of services take a percentage of the payment transaction, not by the month.

The treasure signed there name on it as the president , no idea why and cant say its entire boards fault , as i am on the board and i said 1) we can not vote over phone, and 2)where are the documents.. by that time 2 of his/her friends on the board said "i vote yes" ... "we have 3 yes so do it".

any cost is too much lol, we had 1 person use it in a year. right now they charge us 80 per month, unless they make more then 80 off the fees they charge us.

Are you guys self-managed? A management company wouldn't/shouldn't charge such a fee.

GlenM4 (Tennessee)
Posts: 141

Posted:

yes self

GenoS (Florida)
Posts: 4,276

Posted:

Self mis-managed is more like it. Welcome to the club. The value of having a management company to help keep the board on the straight and narrow should not be underestimated.

SteveM9 (Massachusetts)
Posts: 3,699

Posted:

Quote:

So my question is can they hold us to a 3 year contract?

Yes, of course.

What needs to happen is you need to call the company, tell them who you are, and negotiate with them on closing the account. They may let you go no penalty, or they might charge you a fee. Whatever they tell you, you can go to the board with this info and vote to continue or end it. Then contact the company and tell them.