Legal Question in Business Law in California

Contract law

We signed contract with caregiving agency who asked for up front money times 7 days @ $165.00 per day. ($1155) Contract stated first $350.00 kept as set up fee. Agency didn't provided person who couldn't do the work & person was basically stranded at my parent's house, I had to take day off work to see things through and drove them home at end of day. Agency aware of this.

We followed up with agency, the owner became irrate (with barely a word from us) and did a 5 min. rant.

Question: Is it legal to ask for that kind of money up front?

Their costs: $165.00/day (for live in service) or $16.00/hr. (non-live in).

Their rule: Set up fee of $350 non refundable; $1,155.00 is applied to balance whenever service is ended.

Issues I raise:

- his unprofessional and irrate manner leaves us in a position of not wanting to do business with him, thereby truly losing our $350.00 deposit (investment); had he remained friendly, we could have used him in future instances as they arise and, I assume, not have to re-pay the $350.00 set up fee. Lots of issues here.

My main question to you:

Is it legal for them to ask for 7 days' worth of service?

Even plumbers can only ask for so much percentage up front. Thx very much.


Asked on 1/14/07, 7:10 pm

1 Answer from Attorneys
Terry A. Nelson Nelson & Lawless

Re: Contract law

"Legal" is not the issue. If you want your money back, demand it and follow up with small claims action if needed. Let them argue to a judge that they should get to keep your money. You have nothing to lose by doing so. You can also file formal complaint with the government agencies that license them.

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Answered on 1/15/07, 1:35 pm


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