If a customer is not informed of a company’s cancellation/refund policy, are they entitle to get their money back if they cancel?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

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 11 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.


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 AttorneyPages.com 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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption