Is it legal to not make a refundto acustomer if the seller has not sent the goods to the buyer?

UPDATED: Feb 11, 2012

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Is it legal to not make a refundto acustomer if the seller has not sent the goods to the buyer?

I’ve paid for the service of buying and sending the vehicle from US to another country to the company AGA Export. Payment was made by wire transfer from my personal account and I’ve got the payment order. Now AGA Export refuses to send the vehicle because they say that invoice according to which I’ve made the payment, is not issued by them. I’ve asked them to refund the transaction if they were unable to send the vehicle but they refused to send my money back.

Asked on February 11, 2012 under Business Law, New York


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

IF the company received the payment from you, they have to either provide the goods you purchased or return your money--there are no exceptions. The law does not permit them to keep the money without providing what they agreed to provide.

However, if the money was not in fact ever received by them, they clearly do not have to return it; so if it was intercepted or stolen or misrouted, etc., they are not responsible, with the following exception--

If it was their employee, they would be responsible for his or her stealing money in the course of his or her employment (they'd have to return your money, but then could sue him or her to recover their outlay).

From what you write, this may be a factual dispute--it appears that the company is disputing that it received or acknowledged receipt of the money.

Clearly, if you believe that they did receive the money, you could sue them and try to prove that and receive a judgment in your favor.

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 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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