Legal Question in Construction Law in Georgia

Non-Refundable Deposit

I paid 10K to a company that provides framing products. The deposit allows me to buy the products at wholesale and I am suppose to get $2500 back on each home until the deposit is gone. I was verbally promised that no experience in the building industry was required, and assistance would be provided to me for the first home. After I paid the deposit no assistance has been provided and I have been told for more info I had to pay more money and implement their marketing plan. I have paid for a set of house plans which I rcvd. However, I have rcvd nothing from them that involves the deposit and I'm worried the company is more interested in collecting deposit's than they are providing the assistance they promised. The contract says the deposit is non-refundable. I'm wondering can a deposit be non-refundable? I've since heard that I had to actually recieve something in order for someone to be entitled to money. In other words some exchange had to occur. I read the contract again and it says the deposit is for consideration of receiving Factory wholesale pricing. Is being able to buy at wholesale prices actually considered an exchange eventhough I have not recieved anything. Bottom line, Can I get my money back?


Asked on 4/16/04, 12:43 am

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Non-Refundable Deposit

Yes, I suppose that a deposit could, possibly, be considered consideration for a reduced pricing of materials (in some situations), but, overall, as regards this deal, I'm afraid it sounds as if you've been had. About the only element in this dubious scheme which you haven't mentioned but which I was anticipating was a requirement that you recruit others to make these all necessary desposits, thereby making it a true pyramid (Ponzi) scheme.

As regards the possibility of your getting your money back, I wouldn't hold my breath on this one.

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Answered on 4/16/04, 1:12 am


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