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#corporate-law#new-brunswick
Added: 3 months ago

If a client pays a cash deposit, upon agreeing to a verbal contract, based on a physical proposal that was agreed to, and then wants to pull out of the agreement, am I legally obligated to refund the deposit?

My business was working with a client for a few months & being paid monthly. The client then makes a large investment of $11K on the terms that it would be paid back by continuing our monthly services with them, five mon… (Read more)


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Samuel Michaels

Founder & Lawyer, SM Legal


If no work was complete, you probably have to refund at least a majority of the deposit.


The deposit can be kept if there's an agreement saying it's non-refundable (subject to some limited exceptions) or if the service provider actually incurred costs taking on the project (whether or not services were in fact rendered)


Answered: a month ago