Isn't it understood that most deposits are considered non-refundable?

Question

My mother sold a horse to someone. This person gave my mother a $500 deposit and signed a slip stating that she had given this money to my mother as a deposit and outlined what the final selling price would be. Now, she's backing out and threatening to go to court to retrieve her deposit. What is the point in a deposit if people feel they can get them back if they want to back out? Is there any place online that will help define the word "deposit" -- specifically that they are not refundable?

Answer 1

Actually, some deposits are refundable, depending upon what the contract states and what the local laws are. She might have a good case. If there was no written contract, you mother might have to give up the money. This will go to small claims court (because of the small amount of money). A judge will decide ... no juries and no lawyers.

Answer 2

Often a deposit is refundable but is simply an indication that the buyer is serious and probably has the means to complete the purchase.

For example, an earnest money deposit when you buy a house. It's refundable up until a certain point.

Another example would be a security deposit on an apartment. No only is it refundable, everyone involved EXPECTS it to be refunded.

If your mother had her sign a slip, why didn't the slip point out that the deposit was non-refundable? And who cares if MOST deposits are non-refundable. What matters is whether or not THIS deposit is non-refundable. Since there was obviously not a meeting of the minds I think it probably wasn't non-refundable.

Answer 3

I sympathise with your mother's situation.

Unfortunately, a deposit can be refundable unless stated clearly at the beginning of the transaction that the deposit will not be refundable.

You wrote
she "...signed a slip stating that she had given this money to my mother as a deposit and outlined what the final selling price would be...."

However, in this case, it could be argued that her action, in signing the slip of paper outlining the finally selling price, can be interpreted as completion of the sale. And therefore the initial deposit is now part-payment of that final selling price that she signed to.

If you can prove this, then you may not have to return the $500 and you can insist that she either completes the payment or forfeits the part-payment that she has made.

This is a rather tricky case so I suggest your mother seeks professional advice.

Hope that helps.

Regards
Business in Barnet
http://www.business-in-barnet.com

Answer 4

Its always been my understanding that a deposit on an animal is like a down payment. That deposit is so that it can be held for the person making the deposit until the person pays the rest of the sale price for it. That lady is crazy and is just looking for trouble.

Answer 5

Hmm you're somewhat in a grey section... the only subject I see is you do not have an acknowledgment that the shopper examine the contract. Did you a minimum of get a examine receipt on the e-mail? you are able to desire to state on your contract that by ability of sending you charge... That they examine and conform to the contract Or no rely if this is an information superhighway transaction did you define that in the event that they technique the charge they accept as true with the words an your coverage for reserving? I be sure that for the period of the previous I get carry of any charge that a freelance is signed. the contract acts as their receipt for deposit. it often states interior the contract precisely how lots they payed for the deposit. interior the contract it states that the clientele have up-to a month in the previous the form to cancel. at that ingredient they lose the deposit. and of direction some could variety counting on the shopper and the quantity of deposit and if I had to get carry of something particular for the form. CYA - Documentation is the substantial. lower back what ever your pick on.... sturdy success

Answer 6

Deposits are not always non-refundable. Most businesses will state "non-refundable deposit"