Browse Answers

Sign In

Added: 6 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)

Top Answers

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: 5 months ago