If I’m a painting contractor can a client demand a deposit back if they cancel the job?

Asked on July 21, 2015 under Business Law, New York

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Not unless the agreement or contract between you gave them the right to get the deposit back under these circumstances, or if they cancelled the job because of your material (important) breach, like being unable to start by the date you had agreed in the contract to start. Otherwise, in the absence of some contractual provision giving them the right to get the money back or some material breach by you, a deposit is nonrefundable when the client cancels.


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