What is the law regarding refunds for a daycare service?

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What is the law regarding refunds for a daycare service?

I run an in-home daycare service and just recently found out that I would be relocating due to my husband’s job transfer. I notified all parents that I would provide service up to the 2nd of next month. One family agreed that they would leave their son in my care until then end of the month and paid me in full up front. Then, they suddenly decided that they would pull him from my care and put him in a full-time day care; they would now like a refund for the remaining 2 weeks even though my services are available and they made the choice to terminate early. What is the proper stance here? Am I legally required to give them a refund?

Asked on January 24, 2015 under Business Law, Utah

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

No, you are not required to give a refund if you are providing the services or available and willing to provide the services (and they are at a professionally acceptable level) and the customer simply wants a refund. The law does not require refunds when the services are provided, but only when the provider fails to provide what they were supposed to, or the services provision are reasonably unacceptable in quality. The exception would be if the service agreement/contract/terms of service, etc. included a refund policy; if you voluntarily put out there and had a refund policy, you have to honor its terms.


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