Client has not Completed Deposit. What happens after breach?

[illnevertell]

N.J.
Hi there, I have a client that has booked two separate events. She has booked a destination workshop in Feb. and a workshop at my studio this Dec.
All together, her contracts total 9,500. I offered her a "split" payment and both contracts outline that she will be submitting a 50% deposit to secure the workshops. They also detail that she will be resolving the balance two weeks prior to each event.

Last Monday I sent the contracts. I put her dates on a 48 hour reserve. Last Friday she signed the contracts. This monday she submitted "half" of the deposit (only 25%). At this point the contract was validated I guess? She said she had a daily spending limit and would be submitting the second half of the deposit no later than Wednesday. I have close to eight emails where she has requested extra time and claimed she would be finalizing her payment by the next morning, but she has yet to follow through.

To my understanding she is breaching the contract by not fulfilling her obligations and repeatedly not following through. I have to block off five days to fulfill these services. Accordingly, i have to turn down any bookings that fall on those days. The contract states that deposit is non-refundable and that is is obligated to satisfy the remaining payments according to the schedule detailed in the contract. She continues to claim that she will be submitting the second half of the deposit, but has not followed through. All together, a booking that should have been completed last wednesday has now dragged on two weeks.

Im not sure what I should do? If I say that she is breaching these contracts, is she still obligated to satisfy the payments and do I still render the service? Ideally, I would like her to just make her payments so I can do these workshops. I just want to know the different directions this can go in if she continues to delay on payment. I cannot afford to keep this amount of time reserved without the appropriate deposit.

 

[Zigner]

N.J.
Hi there, I have a client that has booked two separate events. She has booked a destination workshop in Feb. and a workshop at my studio this Dec.
All together, her contracts total 9,500. I offered her a "split" payment and both contracts outline that she will be submitting a 50% deposit to secure the workshops. They also detail that she will be resolving the balance two weeks prior to each event.

Last Monday I sent the contracts. I put her dates on a 48 hour reserve. Last Friday she signed the contracts. This monday she submitted "half" of the deposit (only 25%). At this point the contract was validated I guess? She said she had a daily spending limit and would be submitting the second half of the deposit no later than Wednesday. I have close to eight emails where she has requested extra time and claimed she would be finalizing her payment by the next morning, but she has yet to follow through.

To my understanding she is breaching the contract by not fulfilling her obligations and repeatedly not following through. I have to block off five days to fulfill these services. Accordingly, i have to turn down any bookings that fall on those days. The contract states that deposit is non-refundable and that is is obligated to satisfy the remaining payments according to the schedule detailed in the contract. She continues to claim that she will be submitting the second half of the deposit, but has not followed through. All together, a booking that should have been completed last wednesday has now dragged on two weeks.

Im not sure what I should do? If I say that she is breaching these contracts, is she still obligated to satisfy the payments and do I still render the service? Ideally, I would like her to just make her payments so I can do these workshops. I just want to know the different directions this can go in if she continues to delay on payment. I cannot afford to keep this amount of time reserved without the appropriate deposit.

It's really up to you. You can continue your performance under the contract and hope that she follows through with payment, or you can return the funds she has sent you and tell her the deal is off. Your third option is to keep the funds she has sent you (based on the premise that deposits are non-refundable) and tell her the deal is off, but that will virtually guarantee a lawsuit.

 

[quincy]

N.J.
Hi there, I have a client that has booked two separate events. She has booked a destination workshop in Feb. and a workshop at my studio this Dec.
All together, her contracts total 9,500. I offered her a "split" payment and both contracts outline that she will be submitting a 50% deposit to secure the workshops. They also detail that she will be resolving the balance two weeks prior to each event.

Last Monday I sent the contracts. I put her dates on a 48 hour reserve. Last Friday she signed the contracts. This monday she submitted "half" of the deposit (only 25%). At this point the contract was validated I guess? She said she had a daily spending limit and would be submitting the second half of the deposit no later than Wednesday. I have close to eight emails where she has requested extra time and claimed she would be finalizing her payment by the next morning, but she has yet to follow through.

To my understanding she is breaching the contract by not fulfilling her obligations and repeatedly not following through. I have to block off five days to fulfill these services. Accordingly, i have to turn down any bookings that fall on those days. The contract states that deposit is non-refundable and that is is obligated to satisfy the remaining payments according to the schedule detailed in the contract. She continues to claim that she will be submitting the second half of the deposit, but has not followed through. All together, a booking that should have been completed last wednesday has now dragged on two weeks.

Im not sure what I should do? If I say that she is breaching these contracts, is she still obligated to satisfy the payments and do I still render the service? Ideally, I would like her to just make her payments so I can do these workshops. I just want to know the different directions this can go in if she continues to delay on payment. I cannot afford to keep this amount of time reserved without the appropriate deposit.

If your client has not paid as agreed, then you can cancel the contract - or you can continue to let her delay payments in violation of the contract terms. Because it spells out in the contract that deposits are non-refundable, her partial deposit would be non-refundable.

What you decide to do is up to you.

 

[Zigner]

If your client has not paid as agreed, then you can cancel the contract - or you can continue to let her delay payments in violation of the contract terms. Because it spells out in the contract that deposits are non-refundable, her partial deposit would be non-refundable.

What you decide to do is up to you.

I could see the client arguing that the partial deposit is refundable since it's not really the deposit because it's not 50%
I'm not saying that I'd agree with that line of reasoning, but I can see it being argued.

 

[quincy]

I could see the client arguing that the partial deposit is refundable since it's not really the deposit because it's not 50%
I'm not saying that I'd agree with that line of reasoning, but I can see it being argued.

I can see that being argued, too. And the client could also argue she put down 50% for one event and was waiting to pay to reserve space for the other event.

It could depend on how clear the contract terms are. If there is a definite time limit for paying the full 50% deposit for both events and the client has failed to provide an adequate deposit as required under these terms, the client would have breached the terms and the contract can be cancelled.

I really should not have been quite so definitive with my previous answer, though, without knowing more. Your first response was far better than mine.

 

[illnevertell]

Does additional communication serve as ammendment

I can see that being argued, too. And the client could also argue she put down 50% for one event and was waiting to pay to reserve space for the other event.

It could depend on how clear the contract terms are. If there is a definite time limit for paying the full 50% deposit for both events and the client has failed to provide an adequate deposit as required under these terms, the client would have breached the terms and the contract can be cancelled.

I really should not have been quite so definitive with my previous answer, though, without knowing more. Your first response was far better than mine.

Okay so when she made the first payment, she said it was due to the restrictions on her credit card and that she would be submitting the other half by Wednesday.

Wednesday I received nothing.

Yesterday she said she would have the second half in no later than this morning.

Because all of this communication is via text and email, does this validate the clients "intention" of fulfilling her duties? Over seven times, she has made a guarantee of submitting payment by X date and time and has failed to deliver.

This was the final thing I sent her this afternoon:
yesterday you told me you would have your payment submitted BEFORE tomorrow morning.* This booking has taken two weeks to finalize and it is still not complete.**Both contracts require a 50% deposit, you submitted a partial payment due to your daily spending limit and stated that you would finalizing it no later than Wednesday. *I have extended you as many conveniences as I can, however, you are not performing your contractual obligations and I will not agree to any extensions or exceptions beyond the parameters of the contracts. *If you would like to preserve your bookings please submit your payment now to fulfill your contractual obligations. *

 

[illnevertell]

I can see that being argued, too. And the client could also argue she put down 50% for one event and was waiting to pay to reserve space for the other event.

It could depend on how clear the contract terms are. If there is a definite time limit for paying the full 50% deposit for both events and the client has failed to provide an adequate deposit as required under these terms, the client would have breached the terms and the contract can be cancelled.

I really should not have been quite so definitive with my previous answer, though, without knowing more. Your first response was far better than mine.

As far as the deposits go, via text I said I would apply her first payment to both contracts to secure her dates and she agreed. This was something she requested as she knew I was lifting the tentative hold if I did not receive payment.

One contract is for $2000, the other is for $7500. The 50% deposit is for both contracts. She gave me $2360 on Monday and was supposed to give me another $2360 on Wednesday to complete the 50% deposit.

Because she agreed to me applying the first payment to both contracts and because the amount of the first payment is actually larger than one contract by itself, could she argue otherwise if the invoices, emails, and texts confirm she was using it to validate both agreements?

 

[illnevertell]

I can see that being argued, too. And the client could also argue she put down 50% for one event and was waiting to pay to reserve space for the other event.

It could depend on how clear the contract terms are. If there is a definite time limit for paying the full 50% deposit for both events and the client has failed to provide an adequate deposit as required under these terms, the client would have breached the terms and the contract can be cancelled.

I really should not have been quite so definitive with my previous answer, though, without knowing more. Your first response was far better than mine.

Yes all of the dates and amounts are outlined in each respective contract. This entire agreement was supposed to be validated last Monday. Additionally, the invoice she paid detailed that it was being applied to both contracts.

 

[quincy]

Okay so when she made the first payment, she said it was due to the restrictions on her credit card and that she would be submitting the other half by Wednesday.

Wednesday I received nothing.

Yesterday she said she would have the second half in no later than this morning.

Because all of this communication is via text and email, does this validate the clients "intention" of fulfilling her duties? Over seven times, she has made a guarantee of submitting payment by X date and time and has failed to deliver.

This was the final thing I sent her this afternoon:
yesterday you told me you would have your payment submitted BEFORE tomorrow morning.* This booking has taken two weeks to finalize and it is still not complete.**Both contracts require a 50% deposit, you submitted a partial payment due to your daily spending limit and stated that you would finalizing it no later than Wednesday. *I have extended you as many conveniences as I can, however, you are not performing your contractual obligations and I will not agree to any extensions or exceptions beyond the parameters of the contracts. *If you would like to preserve your bookings please submit your payment now to fulfill your contractual obligations. *

Your latest communication with the client appears to be a good one. I hope your client responds promptly.

As a warning, though: If your client does pay the full deposit now to secure space for her event, you still might find you have some difficulties with her later, when the other 50% becomes due.

I wish you luck.