Do we need to respond to such a demand?

UPDATED: Oct 1, 2022

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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


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 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.

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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