Contract of Adhesion Example – Never Sign These Ridiculous Agreements

I own a building, and the Maglock security doors went out and I was trying to get a company to install a new security system to lock my doors and monitor the building through their commercial security services. I interviewed three companies and selected one which gave me a proposal for their services, which included an installation charge for parts and equipment, and I agreed to the proposal because it was simple and straight forward and on one page, with the terms and price clearly set out. I was happy and satisfied, and not expecting to discover a clear contract of adhesion example.

            Then I received an online document called Standard Commercial Security Agreement (SCSA), which was in fine print and six pages long. It was impossible to read even when I magnified the documents, so I printed it out. The only thing in the SCSA agreement that resembled the one-page document was the terms of the purchase price, taxes, down payment and total payment due.

            The rest of the agreement was impossible to understand and contained annual monitoring service charges for monitoring, repair service plan, inspection service, alarm service verification remote subscriber access, guard response access control and self-monitoring charges, Whew!!!

            The agreement also had a liquidated damage clause that if the company could not access my building to install its equipment, I would be charged a fee of $1,000.00 a day.

            If the equipment and parts are defective, it’s not the company’s responsibility, so I will have to sue the manufacturer. Wait, I’m not sure I can do that because all causes of action are subject to arbitration which is exclusively designated to be in Nassau County, New York, and I’m responsible for all costs and expenses. The services to be performed are for a Montgomery County, Texas company and everyone does business in Montgomery County. Why would we go to New York?

            But wait, even if I went there, the limitation of liability clause limits all causes of action for any liability on the part of the company for Breach of Contract negligent performances or for anything is limited to $250.00 or six times the monthly payment which is approximately $660.00. I couldn’t even get a plane ticket to go to New York for arbitration for $660.00. Just think of this the next time you engage in any services for a company that uses a contract of adhesionlike this.

DO NOT SIGN CONTRACTS OF ADHESION – they make you waive all your legal rights including trial by Judge or Jury or even in the court and state where you reside.

This contract of adhesion example is one of many agreements that we have seen that attempt to establish disproportionate bargaining power. Next time you’re thinking about a contract that obligates you to multiple months or years in the future and its over $5,000.00, come see the Tough Law Firm to review your legal rights.

Tough Law Firm, P.L.L.C.

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