If a customer is not informed of a company’s cancellation/refund policy, are they entitle to get their money back if they cancel?
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If a customer is not informed of a company’s cancellation/refund policy, are they entitle to get their money back if they cancel?
My fiance and I wanted to rent this building for our wedding. At the time of getting the building, the owner said that we had to give her $1000 to hold for that day; at the time of giving her the money she didn’t say, and I didn’t sign, anything saying that the deposit was non-refundable. Well we had to cancel due to our finances and she told us that she couldn’t refund our money. She sent me e-mails showing the different packages of what we could do and what they charged, and on those sheets it said that deposits are non-refundable. However we didn’t buy/order anything so we never saw those sheets. We booked about 2 weeks ago for a date in about 4 weeks.
Asked on March 28, 2011 under Business Law, South Carolina
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Unfortunately for you, the general rule is that a prospective client's or customer's deposit is NOT refundable if it is the client or customer who cancels--unless, that is, the agreement or terms specifically give the client or customer the right to receive a refund. The purpose of a deposit is to encourage the seller or service provider to hold the property or date for you, but guaranteeing them some compensation (e.g. the deposit) if the propostive buyer or customer changes his or her mind. So it's more the case that there would have to be something saying you would get a refund if you change your mind--not that you have to be warned you would not, since deposits are generally not refundable is the party giving the deposit is then the one that violated or terminated the agreement.
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