Nirvana International, Inc. v. ADT Security Services, Inc.
United States District Court for the Southern District of New York
881 F.Supp. 2d 556 (2013)
Amit Sharma, owner of jewelry store Nirvana International (plaintiff), signed and initialed only the first three pages of a six-page contract with ADT Security Services (defendant), declining to agree to pages four through six (which limited ADT's liability to $1,000) without more time to review them; he never communicated his ultimate decision not to accept those pages, and weeks later allowed ADT to install its alarm system and began paying a monthly monitoring fee. Six months later, Nirvana was robbed of $2.4 million in jewelry, undetected by ADT's system, and Nirvana sued for breach of contract, arguing pages four through six, including the liability cap, were never part of the parties' agreement since Sharma never signed them; ADT moved to dismiss, invoking the $1,000 liability limitation.
Whether an offeree who never signs certain contract terms, but proceeds to accept the benefits offered under those terms, is nonetheless bound by the entire agreement, including the unsigned provisions.