Can a company keep my deposit if I cancel?

Only in certain circumstances can businesses keep your deposit or advance payments, or ask you to pay a cancellation charge. If you cancel the contract, the business is generally only entitled to keep or receive an amount sufficient to cover their actual losses that directly result from your cancellation.

Are deposits refundable by law UK?

Businesses can keep your deposit or advance payments, or ask you to pay a cancellation charge, only in certain circumstances. Businesses must take reasonable steps to reduce their losses (eg by re-selling the goods or services). Non-refundable deposits should only be a small percentage of the total price.

Can a deposit be returned if the contract is cancelled?

A deposit is paid to guarantee the customer’s performance; it will also be treated as a part-payment assuming the contract proceeds as planned. If that key characteristic of securing the buyer’s performance is not present, the payment will be a part-payment which will be returnable even if the customer cancels the contract.

Can you keep a deposit if you refuse to work?

Your contracts should have a liquidated damages clause. This way you can keep some or all of the deposit. If the contract does not allow her to cancel, then you have been damages if you refused work due to the pending contract. You will have to put a reasonable value on your damages.

Can a contractor keep part of a deposit?

Customer placed a deposit and now wants to cancel job 3 days before starting. Can I keep part of the deposit? I’m a licensed contractor (builder) w/ a signed contract for some work a customer was going to have me do.

What happens if I refuse to work due to a pending contract?

This way you can keep some or all of the deposit. If the contract does not allow her to cancel, then you have been damages if you refused work due to the pending contract. You will have to put a reasonable value on your damages. This is why you should have consulted an attorney BEFORE there was a problem. I write contracts and leases as well as…

Why is my customer demanding her deposit back?

She’s demanding her whole deposit back claiming that I wasted her time (even though we are starting on Monday).The issue:I have reserved a 1.5 week period to work on her job. Now that she is canceling, it leaves me with a 1.5 week gap w/o work; unlikely that I can completely re-schedule all that time.