Island Automatic Contract Renewal Law
6 Commercial Law - General Regulatory
6-13 Unfair Sales Practices
Automatic Lease Renewal -- Notice Required
(a) For purpose of this
section "AUTOMATIC LEASE RENEWAL"
means a provision in a written lease of personal property
providing that, unless the
lessee gives written notice to the contrary, the lease
shall be automatically renewed for an additional term at
the end of the initial lease term or at the end of any
subsequent lease term.
(b) Subject to the exclusions stated in subsection (d) of
this section, every lessor of personal property under a
written lease containing
an automatic lease renewal SHALL GIVE WRITTEN NOTICE to the
lessee not more than ninety (90) nor less than forty-five
(45) days prior to the expiration of the lease term.
The notice shall state the date upon which the lease term
will expire and shall advise the lessee that the lease
will be AUTOMATICALLY RENEWED
UNLESS THE LESSEE GIVES WRITTEN NOTICE TO THE CONTRARY.
(c) In the event that the LESSOR FAILS
TO GIVE NOTICE
as required by subsection (b) of this
section, the AUTOMATIC LEASE
SHALL BE VOIDABLE AT THE OPTION OF THE LESSEE.
(d) This section shall not apply to any lease having a term
of less than one year. This section shall not apply to any
lease wherein the fair
market value of the property being
leased exceeds one hundred thousand dollars ($100,000) on
the date the lease is executed.
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