I really don't like the wording--seems a nearly perfect example of a contract set-up to be sold to a 3td party.
I also note that "membership prices are subject to change at the discression of the academy."
I'd be curious to know why a contractual document would have that little line in it---presumably one signs a contract to lock in a specific amount for given period of time.
Not being a legal pro, I would question its inclusion--why would it be there?---And its enforcabilty in any case.
Just seems weird to me.
Also not a fan of the automatic withdrawl--too many things that could go wrong there.
Clause 4 also worries me as well--in effect it states that if any PART of the contract should be deemed unenforceable--perhaps a portion of it might be found inconsistant with local/state regs--then the rest of it is STILL actionable.
To my mind this would strongly imply that the issuer KNOWS sections of the contract are "questionable" under the local legal system.
I'd also guess that they want the information on the "nearest relative not living with you" is because in a collge town, people are transitory and they need the info to maybe track your friend down.
Could be just boilerplate--but it kinda bothers me.
I've seen MA contracts that ask for the make/model number and licesense plate of your car as well as contact information on your employer.
Overall, this is a really good example or a really bad contract for people to sign for training.
The biggest "red flag" however is no mention is made of how to canceal the contract if you move, graduate etc.
The $200 a month sounds really bad by itself.
There does not seem however any contractual means to prevent your friend from taking some of the actions suggested on this thread.
My guess is that the school onwer has already sold off the paper to 3td party--thus they would have return some of the monies THEY have been paid for the contract.
That would make it a bit more problematic---if he canceals the contract he/she just is not out future monies--they will have return what they have already been paid--or a percentage--depending on THIER contract with whomever bought the paper.
As was suggested above--you might run the contract by the legal dept of the school you go to.
Also you might contact the school paper and perhapsa local paper as well.
See if they will run a story on the predatory business practices of the school/owner.
Chances are pretty good that the school and local communitry send a lot of business to that location---fellow students and communtiy might thank you for informing them of the dangers of doing business with this person.
Perhpas a future reporter could go undercover and see what they are being told--have them ask about how they could get out of the contract if they need to ---see what they are being told.
Poor customer relations and poor business practice make it hard for the whole business community.