Legal Question in Business Law in California

The problem you have is that if she sues you for it, you can't produce any assent to those terms. If you expressly told her that it was non-refundable at least you could say that, but you don't indicate that here.

In general, so long as you can show that the customer was on notice that the deposit was non-refundable AND you have a good faith basis to keep it, meaning that it would not otherwise amount to unjust enrichment for you, then you should be entitled to retain it.

I would of course work with a well-written master service agreement and always be sure to get assent moving forward. This does not have to be a signature on hard copy. It could also be an email stating that they agree to your terms, etc. Something that clearly shows assent and a meeting of the minds.

Here, if you honestly believe you are entitled to keep it because the cancelation put you in a bad way, then I would try to hold out and see what happens. Perhaps you can negotiate something so you don't walk away losing on this.

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Our firm is now referred by the American Bar Association (see under the New York section):

http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

[email protected]

DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.