Legal Question in Consumer Law in Oklahoma

I paid $90,000 to hire a business consulting firm to help me start a new internet business in 2010. One month into the program I realize that the consultant specializes in a slightly different area for internet businesses than what my business focuses on and therefore is not a good fit for my business model. I signed a contract with a "no-refund policy". What's the legal enforceability for a no refund policy if I cancel our business relationship for the remaining portion of 2010?


Asked on 2/06/10, 9:59 am

1 Answer from Attorneys

All contracts are enforcable based on signed agreements by the affected parties and based on the information you provided, the key word that should have alerted you is the term "business consulting." Your first step should have been to contact a technical consultant or web developer, particularly, if you were only requesting expertise in an internet business and/or its functions.

Otherwise, you should have only agreed with the consultant to develop a strategic business, marketing and financial plan. Only professioal web developer or technical consultants can give you the in's and out's regarding specific areas to target for this type of business. because their are certain laws that apply. And, it is your responsibility to do your homework before signing a contract. But, you can prove the consulting firm deliberately misrepresented their firm expertise and had knowledge that they did not specialize in this area. They [the firm] had a responsibility [in good faith] to inform you of this. These specialities or services should be discussed in detail and up front and specific expectations should have been included in the contract with an opportunity to review or modify the contract prior to signing.

Finally,f you are not getting the services outlined in this contract, the business consulting firm may be in breach. The purpose of a contract is to protect both parties, therefore, the firm MUST be able to perform the services specifically outlined in the contract. If not, the conditions of the contract cannot be fulfilled. Under these circumstances, you should be able to pursue a refund in spite of this policy, particularly, if a business relationship only existed based on what can be referred to false pretense or misrepresentation of services. I hope this helps.

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Answered on 2/20/10, 10:58 am


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