Legal Question in Credit and Debt Law in Indiana
I work for a profitable organization, which collects (non-refundable) fees for entry as a contestant for competition. Competitors often seek sponsors to pay for a portion of these fees. One competitor collected a $200 fee from a sponsor, who then several days later claimed they were sponsoring someone else, and requested the $200 back. However, she had already submitted the $200 to our office, and the fees had been processed prior to their request for a refund of their donation. Now the sponsor is threatening to sue this competitor if she doesn't return the funds. Does she have a legal obligation to return those sponsorship funds?
1 Answer from Attorneys
If she stopped seeking sponsorships because she already had this one and it is too late for her to obtain a different sponsor, her reliance on their promise would probably insulate her from liability in a suit.
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