What to do if I paid a deposit for material to a tile shop last year for a project that was supposed to start this year but didn’t?

UPDATED: Feb 9, 2015

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What to do if I paid a deposit for material to a tile shop last year for a project that was supposed to start this year but didn’t?

I tried to contact them to get the tiles. The project got delayed indefinitely, so I figured out that they are out of business. I have paid the $1,600

Asked on February 9, 2015 under Business Law, North Carolina


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

If the delays were not due to the shop's actions, then the agreement and deposit still stand--as long as they are willing and able to go foward and provide the tile when you tell them to, they can still keep the deposit and you'd have to pay the balance when they deliver (or otherwise as per the terms of the agreement of sale). If they don't/can't/won't fulfill their obligations now, you could likely sue them to get the money back.

If the delays were due to the shop, then they likely breached their contract, you don't need to keep working with them, and can sue for the deposit back.

If they are out of business and if they were an LLC or corporation, however, then it is not likely you'll ever get the money. If it was an LLC or corp., you can only sue the business itself; but if the business doesn't exist and/or has not income and assets, you won't collect. If the business were not an LLC or corporation, you can sue the owner(s) personally.

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.

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