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Return of Deposit?

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macglade

Junior Member
What is the name of your state (only U.S. law)? California

For many years, a family has been sending their child to our school. Each year they pay a non-refundable deposit for that child and sign a contract that acknowledges that deposit is not refundable.

One year they send a check for the deposit, write "Deposit" on the memo line and return with it a worksheet they filled out by hand to help them calculate the tuition. On the line that shows the deposit, they write in the amount of the deposit. Among the materials given to them when they fill out the worksheet are school policies regarding enrollment and the contract. The "non-refundability' of the deposit is mentioned 7 times in this material.

They never give us a signed contract although we contact them and ask for it.

Several days before the "walk-away" date of the contract (which, keep in mind they never signed) they inform us their child will not return. They ask for the return of the deposit.

Our position is a) they have know for years that deposits are not returned, b) that they submitted it for the purpose for which it was intended--to hold a space for their child--c) that they noted on the check their wish that it was to be used as a deposit. Seems like a case of having your cake and eating it too (wants the deposit to serve as a place holder in which case it is non-refundable BUT wants it back if they don't want it to hold a spot)

Are we within our rights to retain the deposit?What is the name of your state (only U.S. law)?
 


macglade

Junior Member
One more detail

The check was cashed w/o objection or comment by them 3 months before they asked us to return it.
 

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