FOR IMMEDIATE RELEASE
December 1, 2006
Contact: Erin Marsicano
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Governor Signs Waugh's Contract Under Seal Legislation

HARRISBURG – Governor Rendell has signed legislation sponsored by Sen. Mike Waugh (R-York) that requires contracts under seal to incorporate a statement informing individuals that they are signing such a contract, which is enforceable for 20 years. 

"It is apparent that consumers often sign contracts without truly understanding the long-term ramifications that come with putting their signature, or their seal, on what is considered a contract under seal," said Waugh.  "This legislation will make consumers more aware of what they are signing in a long-term contract under seal." 

The idea for Senate Bill (SB) 860 came from a York County District Justice, who became concerned after individuals were being brought to court for failing to fulfill their responsibilities on contracts under seal they had signed many years prior. 

"District Justice Ronald Haskell brought this issue to my attention based on the cases he was seeing in his courtroom," said Waugh.  "He wanted consumers to realize that up to 20 years down the road, that contract they signed is still enforceable, and actions can be taken against them if they do not fulfill their responsibilities."

SB 860 was amended in the House Consumer Protection and Professional Licensure Committee. The amendment revised the language that must be included in a contract under seal.  Originally the statement explained that the contract is enforceable for "a period of 20 years after failing to perform any promise that forms all or part of the contract."  The bill now states that the contract is "a contract under seal and may be enforced under 42 PA.C.S. § 5529 (B)," (Title 42 of the Pennsylvania Consolidated Statutes).

"Although the statement is not as descriptive as the original proposal, it still adds an extra level of information that will help consumers better understand what a contract under seal means," said Waugh.  "And I thank District Justice Haskell for bringing this issue to the forefront, so we could address it legislatively."