Can a business charge a cancellation fee if a customer cancelsa job?

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Can a business charge a cancellation fee if a customer cancelsa job?

I’m the owner of a business that offers a free drop off and pick up service, if the customer drops off a job with the intent of having the work done then decides to cancel, can we charge a cancellation fee.

Asked on February 7, 2012 under Business Law, Connecticut

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Cancellation fees are legal, as long as the customer either explicitly, or at least implicitly, agrees to it. Best would be if you could have customers sign work orders or agreements which indicate there is a cancellation fee. If that doesn't work, as a practical matter, with your business model, have the cancellation fee prominently displayed in some fashion (as the point of drop off; left behind on any materials you leave when you pick up; etc.) to make sure there is notice of the cancellation fee; with notice, the customer can be said to have agreed to it. (Think about the signs in many doctor's offices, which say that there is a cancellation fee if an appointment is not cancelled sufficiently far in advance.)


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