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  1. #1

    Post Is a Deposit Refundable

    In the state of Florida, is it implied, if not expressed in a contract to manufacture a custom item that the deposit is refundable? We have put several hours into the design and the manufacturing specs of the custom item that the customer ordered. We have also acted as a consultant, aided in the design, and created blueprints for their design.

    They then decided that it is taking to long because of permiting issues, and asked us to violate the law and asked us to install without a permit, and we declined. They then cancelled the order because we refused to put our license at risk. Should they be eligible for their deposit back?

    Thanks

  2. #2
    Join Date
    Sep 2005
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    Behind a Desk
    Posts
    98,846

    Default Re: Is a Deposit Refundable

    Absent an agreement to the contrary, a deposit is normally refundable. But where you perform services for somebody and they know you are performing the services, even in the absence of a contract you have a claim for "quantum meruit" - compensation for the value of the work performed. If it were me I would invoice them for the reasonable value of the work performed and refund the balance of the deposit, if any, above and beyond the reasonable value of the work. (Admittedly, if I did it my way they might sue me, and sometimes it's less of an expense and hassle to take a loss.)

  3. #3

    Default Re: Is a Deposit Refundable

    If we have it posted on our website that deposits are non refundable, is that sufficient enough?

  4. #4
    Join Date
    Mar 2005
    Location
    Michigan
    Posts
    28,906

    Default Re: Is a Deposit Refundable

    The best answer is "maybe". It depends on how the website is laid out, how you document consent to that condition, and of course whether this order was placed through the website, as well as upon the laws of your state.

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