If I go to beauty school but in the middle of our program they decided to close, do we have a breach of contract and can we sue them for our money back?

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If I go to beauty school but in the middle of our program they decided to close, do we have a breach of contract and can we sue them for our money back?

We all had to relocate to attempt to finish our program. They were going to pay for it but decided not to.

Asked on January 12, 2016 under Business Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

Legally, you can likely sue them to get your money back, based on both breach of contract and "unjust enrichment" (unfair to let them keep the money without providing the education). Practically, if the school was an LLC or corporation and is now out of business, you're not likely to get anything: you can only sue the LLC or corporation, not the owners, and if the business is closed, it probably has no money to pay a judgment. (If the busines were not an LLC or corporation, however, you can likely sue the owner[s] personally, which gives you recourse against their personal assets, such as their houses or bank accounts).


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