What to do about an automatic renewal clause in a contract?
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What to do about an automatic renewal clause in a contract?
Hired a janitorial company and signed a 2 year contract. In that contract there is a statement that indicates an automatic renewal clause if notice is not provided within 30 days of the contract end date. Then 5 months before the contract was ending I reached out to the company to negotiate a lower price, and indicated that I was not interested in continuing the contract at the specified price. We never did come to an agreement and the end date passed. The janitorial company is holding me to the renewal clause for an additional 2 years. Is this legal, and can I get out from under it?
Asked on October 19, 2011 under Business Law, Texas
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Many states deem automatic renewal clauses like the one you have written about
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