deposit and company went out of business

UPDATED: Oct 1, 2022

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deposit and company went out of business

I am a small window and door installation company in South Florida and have
provided a deposit to a window manufacturer which has shut their doors. What is
my right if any for the deposit we sent them and did not get the material we
ordered. I spoke with them two weeks ago and they told me that my order was on

Asked on February 16, 2018 under Business Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

If the company with which you placed the order was not an LLC or corporation, you can sue the owner(s) personally for the money to recover it: in a non-LLC or -corporation, there is no legal distinction between the company and owner(s) and the owner(s) are responsible for the company's debts.
If the company was an LLC or corporation and someone has bought the actual LLC or corporation (i.e. the business entity), the LLC or corporation still exists under new ownership and is still responsible: it has to honor your order or repay your deposit and you could sue the LLC or corporation if they don't.
If the company was an LLC or corporation and no one has bought the actual LLC or corporation and the LLC or corporation is no longer operating, there is probably nothing to be done: your deposit may well be lost. The LLC or corporation is still technically liable for it, but if it is insolvent, you won't get the product or money from them.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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