Hoaxes Home Internet Ads Nigerian Rollover Search Terminology Types

Contract Rollover - Unfair Contracts And Scams.

For more information on unfair contracts, scams and hoaxes please see the links further down and to the right of this page.

Contract rollover clauses are something to beware of. Rollover clauses are usually termed along the lines of "if you wish to terminate the contract you must contact us in writing no sooner than 90 days and no later than 30 days before the anniversary of the contract signing date".

These clauses generally sound fairly benign, but they are usually written with the intention of retaining your business for as long as possible or penalising you if you try to cancel the service. They leave you a small window of opportunity to cancel the contract and if you miss it you are penalised. If you are asked to sign a contract with such a clause, read it carefully and make sure you fully understand the implications. Are there penalties if you cancel in the second or subsequent rollover terms?

Not all companies use these clauses in such a calous way. We have seen examples where the rollover clause applies simply to ensure continuity of service at the end of a contract, and the consumer may contact the company any time after the rollover date to cancel the contract without penalty.

An example of a company whose rollover clause is heavily weighted towards their own gain is the Cleanaway Australia contract as listed below...

Clause 4.1 If our Agreement is shown as permanent in the Form, subject to clause 4.3(a), it will automatically be renewed at the end of each term for a further Term unless either of us gives written notice to the other at least 60 days before the end of that Term.

Clause 4.4 If: (a) you terminate our Agreement early rather than by giving proper notice under either clause 4.1 or 4.2... You must pay us damages calculated by multiplying Your total average Monthly Charge for the period between the commencement date by half the number of complete months left in the term

The "damages" calculation is then based on the current monthly charges which may be nothing at all like the charges that were originally accepted - due to other clauses in the contract that allow Cleanaway unlimited variability of the fees and charges. See Cleanaway Case 1.

Notice how Cleanaway have cleverly worded clause 4.1 to make it seem that each party has an equal responsibility to inform the other at least 60 days prior to the rollover? Do you think this was really meant to place the parties on an even footing? Think about it. The reason the clause is written in that way is to make the whole deal seem to apply evenly to both parties. The sting comes later in another clause (4.4) where the "early termination penalty" is shown. This penalty does not only apply to early termination in the first term of the contract. It applies also to early termination in any subsequent rolled over terms of the contract. So each time the contract automatically rolls over, you are locked in again for another term (12 months, 24 months, 36 months or whatever term you have originally signed for). During that new term you can not cancel the contract early without penalty. Clever isn't it? Designed to maximise profits, but not designed to keep friendly terms with ex customers.

In Australia, consumers and businesses are not protected against unfair rollover clauses.

Here is another example of this type of practice in the UK from the Federation of Small Businesses. This one involves a power supplier called NPower.

We expect that these types of clauses will become less widely used as more people start to talk about them on the internet. When the word gets out that a company uses such clauses they will have little choice other than to change their contracts if they want to retain customers. At this stage however consumers and small businesses should beware because the practice is still prevalant in Australia and the UK. The Cleanaway and NPower examples are just two of many.

More information on scams, hoaxes and unfair contracts



Have your say - Contact us

This form should be used to make first contact if you would like to publish details of an unfair contract, a hoax or a scam. If you have been stung by unscrupulous operators please feel free to share the experience so that others will be wary. We will contact you for supporting evidence before the case is published. We are not a mediator. We simply help you to warn others about your experience.

Please also contact us if you find any errors in the information presented, or if you would like to see other information added to this site. We are not able to reply to all submissions and we thank you in advance for taking the time to contact us. Please be assured that all submissions are reviewed for suitability and all suitable submissions will add to the relevance of this site's content.

Please complete the form and click submit. All fields are required.
If you wish to have your name or your company name and web site published as the provider of the article please include the details at the end of the article.

NOTE: Before submitting this form...

  • We do not offer legal advice. We are not an authority on contract law and we will not respond to questions about the law.
  • We publish facts only. We do not publish hearsay. Be prepared to offer us proof of your claims.
  • We are mostly interested in contracts that are written and operated within the law, but written in such a way that any reasonable person would question the ethics of the contract writer, or contracts that exploit loopholes in the law for unfair gains.
Your Name:
Email:
Information:
Please enter the characters shown in the image.
The possible characters are letters from A to Z in capitals and the numbers from 0 to 9.
This is to verify that the form is being used by a real human and not a spammer's computer.
   

Other Pages On This Site about scams and unfair contracts
Abridged     Arbitration     Blank Check     Blank Cheque     Cases     Cheques     Cleanaway     Clickwrap     Comfort Letter     Conditions     Confidentiality Agreement     Consensus Ad Idem     Consideration     Consumer     Contact     Contract Law     Contract Rollover     Contracts     Damage Control     De Facto     De Jure     De Minimis     De Novo     Due Diligence     Employment Contracts     Ex Gratia     Ex Parte     Ex Post Facto     Exclusion Clause     Exempli Gratia     Exemption Clause     Express Terms     Fees     Grants     Hoaxes     Holden     Id Est     Implied Terms     Incorporate     Injunction     Inter Alia     Internet Ads     Joint And Several Liability     Jurisdiction     Known Risks     Lawyers     Liability     Liquidation     Mala Fides     Mediation     Misrepresentation     Nemo Dat Quod Non Habet     Nigerian     Non Compos Mentis     Non Est Factum     Npower     Parent Company     Pari Passu     Partnership     Pensioner Vs Refugee     Prima Facie     Pro Rata     Pro Tanto     Pro Tempore     Proxy     Quid Pro Quo     Quorum     Ratification     Repudiation     Resources     Restrictive Covenant     Rollover     Scams     Search     Solicitors     Subject To Contract     Terminology     Trademark     Types     Uberrima Fides     Underwriter     Unenforceable     Unfair Terms     Universal Utilities     Unilateral Variation Clause     Void     Warranties     Warranty     Without Prejudice    
Site Main Pages
HOME
Advise When Site Updates
Contact Us
Contract Rollover
Hoaxes
Home
Internet Ads
Nigerian
Search
Terminology
Types
Recommended Links
Couplings Information
Gearboxes Information
Hobby Engineering Supplies
Jokes and Trivia
Miniature Bearings Australia
Shafting Information
Small Parts and Bearings Online
Stainless Selection
Catalogs
Wikipedia
World Time
Other scams and unfair contracts Pages
Abridged
Arbitration
Blank Check
Blank Cheque
Cases
Cheques
Cleanaway
Clickwrap
Comfort Letter
Conditions
Confidentiality Agreement
Consensus Ad Idem
Consideration
Consumer
Contact
Contract Law
Contract Rollover
Contracts
Damage Control
De Facto
De Jure
De Minimis
De Novo
Due Diligence
Employment Contracts
Ex Gratia
Ex Parte
Ex Post Facto
Exclusion Clause
Exempli Gratia
Exemption Clause
Express Terms
Fees
Grants
Hoaxes
Holden
Id Est
Implied Terms
Incorporate
Injunction
Inter Alia
Internet Ads
Joint And Several Liability
Jurisdiction
Known Risks
Lawyers
Liability
Liquidation
Mala Fides
Mediation
Misrepresentation
Nemo Dat Quod Non Habet
Nigerian
Non Compos Mentis
Non Est Factum
Npower
Parent Company
Pari Passu
Partnership
Pensioner Vs Refugee
Prima Facie
Pro Rata
Pro Tanto
Pro Tempore
Proxy
Quid Pro Quo
Quorum
Ratification
Repudiation
Resources
Restrictive Covenant
Rollover
Scams
Search
Solicitors
Subject To Contract
Terminology
Trademark
Types
Uberrima Fides
Underwriter
Unenforceable
Unfair Terms
Universal Utilities
Unilateral Variation Clause
Void
Warranties
Warranty
Without Prejudice
Site Summary:

Privacy Policy

unfaircontracts.info is your one stop resource for all types of information on unfair contracts and scams. Scams and contracts discussed include Nigerian bank account scams, automatic contract renewals, internet advertisement "get rich quick" type scams and much more.

This site is not a point of sale. It is designed to provide information only and to hopefully point you in the right direction with your unfair contracts and scams enquiries.

User input is encouraged and forms are provided throughout the site to enable users to make corrections or provide additional data.

© Copyright unfaircontracts.info/. All rights reserved.