I signed with a PM June 2015, for a 1 year contract, expired June 2016. What I didn't notice is that they sent me a notice at the end of this contract that states: "This PM agreement will automatically extended for another year if you do not reply with in 14 days." (therefor creating a new contract June 2016 - June 2017) I wish to change agent, but they are saying I have a contract with them till, June 2017, and I would have to pay a break fee. Is this legal to extended a contract in this manner? There is no mention of contract extensions in the original contract that I signed June 2015.
Are you sure there is no mention of contract extensions in the original? I've seen contracts which do this (and I would never sign one). Is this in SA? Is it based on a standard REISA management agreement? Tell them to show you where it says you signed a contract for 2016-17.
The 2 mainly used contracts, REISA and Auctioneers Society don't have that condition in their standard contract template. Was it a clause they added and you signed off on?
Yes, this is in SA and the original contract is based on the REISA standard Residential Management Agreement. No mention (double checked) of a contract extension in the original contract.
You cant contract by being advised you must otherwise opt out. Electricity contracts all had this and its 100% bluff. The contractual terms may continue until revoked. Enforcement of penalties, fees and the like to terminate etc would be problematic. If they try to tell you then I would argue the ACCC or State Fair Trading can act on misleading and deceptive conduct.
