Do we need to respond to such a demand?

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Do we need to respond to such a demand?

My small business sells internet to local businesses. We normally offer two packages, the first is when a client is not able to pay for premium packages. In such a case, the client has to purchase equipments that meet our standards and all we do is charge for internet usage. A client choose this option, but three days later before he even signs an contract with uswhich is signed 30 days after installation, he said he is no longer intrested with our internet service. He served us with a demand letter on the amount he used to purchase the equipments. What should we do?

Asked on December 24, 2017 under Business Law, Virginia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 3 years ago | Contributor

You have no obligation to reimburse him the amount he paid for equipment if HE choose to not use your service. When the customer chooses to not use or continue a vendor's services, the vendor is not liable for any amounts or costs the customer incurred due to his own free choice (e.g. the choice to not go ahead and use you). If *you* had refused or failed to provide the service for some reason, then you would be liable for any costs that failure caused--but that is not the situation you describe. He is liable for the costs or consequences of his own decisions or actions.


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