My question involves business law in the state of: Colorado
My business is fairly young and for the first year I was operating out of my house and traveling onsite to customers homes and business to preform services. In October of 2009 I had a customer want to take a look at her laptop and see what was wrong with it because it wasn't charging. It was an older Gateway laptop running Windows XP. Since she was from out of town I met her at a restaurant here in town to pick the laptopp up from her. I had done some work for her previously and just picked it up, she didn't sign anything to say that I had her laptop in my possession. I found out that the laptop needed some parts and it would have been around $250 at least to have it repaired. I called her and informed her that her laptop needed some parts and she said she would call back and let me know if she wanted to fix it.
Fast forward 4 months and I still hadn't heard from her so I tried to call her and the line said it was disconnected. Seeing as how her computer was really broken I recycled her laptop and forgot about the situation.
2 months after that she claims she tried to call me to get her laptop back. She was calling my personal cell phone and said she let a few messages. She says she has records that she called but I don't recall ever getting the message. My cell phone around that time was doing some odd things so I replaced it.
Last week she finally decided to call my business line and she talked to my business partner. She started saying how she was going to sue me personally, my company, and how she was going to file a police report for a stolen laptop. Of course both my partner and I were shocked because this is our first ever experience with something like this. We offered to replace her laptop with a brand new one that would be around a mid-range laptop which is what she had before. We gave her some model numbers of some computers that would be comparable and she decided that that would be a good deal. We tried to get the laptop from Best Buy later that day and we discovered that they were sold out and that their website would not let us order that laptop online. So we found a similar laptop as far as hardware specs were concerned and we called her and informed her that the previous model that we discussed was sold out and that we found another model that we would be happy to provide her with. She said that instead of that laptop that she would like a $400 cash settlement because more than likely she would just want to return the laptop anyway and exchange for something else to which we agreed. We told her that once she accepted the cash settlement that we would want her to sign a agreement that would close this issue once and for all.
We got an e-mail from her today saying that she was able to find the original model at Best Buy and that she no longer trusted us because we were "obviously trying to pull the wool over her eyes" and the cash settlement was no longer acceptable. We are going to call her in a little bit to offer to just purchase that laptop for her. I need some advice as to what to do with this situation.