If a client is told about a refund policy over the phone, and then makes a request against the refund policy, do I have to honor that refund?

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If a client is told about a refund policy over the phone, and then makes a request against the refund policy, do I have to honor that refund?

The policies are on my website. A client made a 50% deposit for a photoshoot for almost $300. We do not allow cancelations within 72 hours of the appointment. She knew that. So she cancels 48hrs in advance and tells me, “you will have no problem booking that up” not true at all. So I told her about the refund policy again when she “acted” surprised about not getting her money back. She became angry and now he lawyer keeps calling me demanding a refund and I told him she could have it in 30 days. I am over 30 days and now he is considering taking me to court saying this could become $300,000.

Asked on August 30, 2012 under Business Law, Pennsylvania

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

From a business standpoint if you have a refund policy and a client fails to honor the cancellation policy by cancelling too late, then you have a decision to make as to the $300 at issue is worth your time and effort by not simply returning the deposit for the photo shoot or not. The key issue is did the client sign any document acknowledging the 72 hour minimum notice or not for cancellation and the return of any deposit?

If not, then I would simply return the deposit and move forward. Getting invloved in a legal battle whether you are right or wrong will cost you at least the $300 in time not taking account possible attorney's fees. I suggest that you consult further with a business attorney about your matter.


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