Legal Question in Consumer Law in California

Hello. I signed a contract a few months ago for a summer program that was supposed to be based in Turkey, as indicated in the contract. It was a tuition-based program (not associated with a particular university or college). In total I paid $4824.67.

On April 29th a zoom meeting was held, during which the administrative team told us that it would no longer be held in Turkey, but maybe held in LA. After a few weeks of back and forth, they cancelled the program in its entirety.

In the contract, it states “The $500 deposit is non-refundable because we need to place down-payments for things that are non-refundable for the Academy.” I spoke to another lawyer, who said that because they drastically changed the nature of the program after I signed it is a “misrepresentation of contract” or “breach of contract.” Do you agree with this terminology?

The program has only refunded me $3,993.67. They are now saying they are keeping my deposit, for essentially a product that was never delivered. What is your advice?


Asked on 7/15/23, 6:21 am

1 Answer from Attorneys

I agree. The deposit was non-refundable if YOU cancelled the contract, not if they did. Essentially the deal was that you could breach the contract for $500 (presumably subject to a deadline and possibly other terms and conditions). It doesn't allow them to breach the contract and keep $500. Even if they argue that was the deal, no court would uphold it, because that would essentially legalize robbing people by making contracts with a non-refundable deposit and then cancelling them at will. It is probably possible to draft a contract wherein it is agreed and understood that if the program expends money and makes efforts to perform the contract in good faith a portion of the fee would be deemed earned if they have to cancel. But absent express terms like that, they are not entitled to keep your deposit if they are the ones who cancel.

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Answered on 7/15/23, 10:25 am


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