Refund Dispute

[Pro Remodel]

What is the name of your state? California

I am a general contractor here in the bay area. I just signed a bathroom remodel contract with a customer on Friday March 14, 2003. Under California state contractor law a customer has 3 business days to cancel a contract. He opted to do so, because he decieded to not conform to the payment schedule he agreed upon signing on Friday March 14, 2003. However to my knowledge it states nothing regarding the refunding of deposits. Furthermore every contract I have a customer sign is accompanied by a "description of work to be done" addendum which clearly states the agreed price for the job, payment installments (how much and at what point in the construction phase) and in bold computer print the words ALL DEPOSITS ARE NON-REFUNDABLE.
I also clearly state in bold red typed writing above where the customer signs "I have read, agree, and understand the aformentioned." The customer signed this document and is now wanting his deposit returned.

Do I have a binding contract?

 

[JETX]

"Do I have a binding contract?"
*** Obviously, we are unable to review your contract to confirm its validity; however, based on your post, I think the real questions that you are asking are:
1) If the customer notifies you of their desire to void the agreement within the allowed 3 days, do you have a binding contract? The answer is no.
2) If the customer rescinds the agreement as allowed by law, can you keep the deposit?? Again, the answer is no..... by voiding the contract, you have no right to retain the deposit.

 

[I AM ALWAYS LIABLE]

My response:

Under and by virtue of California Civil Code section 1689.5 (the Home Solicitation code) you are obligated by law to return all payments made and given to you within 10 days from the date of the cancellation.

You should have read this code section. Then, you would have realized that your statement, "ALL DEPOSITS ARE NON-REFUNDABLE" is invalid.

Unless you want your license yanked pursuant to the California Business and Professions Code, I would strongly suggest that you return your customer's money "toot sweet."

IAAL

 

[Pro Remodel]

Hey JetX,

I know the "actual" contract is now void. But there is a 2nd and "seperate document" that states "all deposits are non-refundundable". Is this not a contract "agreement between 2 parties?

And what qualifies you as law? Prove it.