Legal Question in Consumer Law in Utah

Liquidated Damage Clause

About three months ago I had planned on selling my home to relocate for work. We decided to finish our basement and signed a contract with a Custom Shower Company to build a custom bath. The contract had liquidated damages clause 50% of deposit if contract canceled. Before they could commence work they needed some measurements but could not do the measurement because we had to get our plumbing completed. We had to put 50% of the cost the shower for a depoit. Two months later, do to some changes in my job we had to take the house off the market. We did not have a chance to finish the plumbing, and asked the bath company to cancel the country and asked if they would refund the money...They said they would refund 50% of my deposit....Now, the sales person came to my house for the ''free estimate'', we signed the contract, but they DID NOT do any work at all. They filed our contract in a file cabinet until we called and never called to ask about coming back out to finish the measurement so they could start work on the shower. So if they are using the contract as a penalty for breach of contract and have done no work on our shower and purchased no materials to build it, do they have to return 100% of our deposit?


Asked on 9/09/07, 10:47 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Liquidated Damage Clause

Read the terms of your contract with them. Whatever those terms are is the agreement. If no terms specifically talk about this issue, then you will have to sue to get your deposit back.

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Answered on 9/10/07, 4:23 pm


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