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breach of contract question

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ohio, back in november of 2000 my wife and i built a brand new home. several salesmen visited our home trying to sell us their products. i usually turned them away not wanting their product except for one company. the company was rainsoft, they are a water conditioning company that sells water softeners. the salesman was a great guy and seemed to know his companys' product well so i agreed to purchase the system for $4990.00 and was told it would be paid off in 48 months at $99.80 per month with $200.00 down, I agreed. My payments were deffered for 90 days with the 1st bill arriving about 45 days after the item was installed. The first bill was paid in the amount of $100.00 then when the second bill came it said the new balance was $5770.00. I was told $4990.00 so I called the finance co. they said that it was an open ended loan and with finance charges and interest if I only paid the $99.80 per month it would never be paid off in 48 months. i called rainsoft, told them this was not the type of loan I agreed to. They said they would pay off that loan and do an in house financing deal for me at 11% interest, I said fine. When they paid off the 1st loan and sent me the paperworks for the in house deal it said I was to pay back nearly $6700.00. I again called them and said it was still wrong, I was only going to pay $4990.00 as agreed. They said that perhaps they should just come get the system, I agreed, that that was fine if that's what they wanted to do. I got a letter stating that they would be there on such and such date to remove the system rather than face them in court to collect on it. they came and removed the system. A few weeks go by and they sent me papers about a court case wanting $6670.00 for the system and $15000.00 in puntiave and exemplary damages. they said I breached the contract. This all came about I think because I sent them a letter threasening a small claims case to repair a sink that they had drilled a hole in for a special faucet for drinking water. they wanted to put some cover over this hole rather than replace the sink but the sink was brand new until they came into my house and installed the system that they decided to come back and remove. I had told them on numerous occasions that I wanted to keep the system but that I was not willing to pay $1600.00 more than what I agreed upon paying. I filed my answer to the charges with the clerk of courts but I need to know how to file a counter claim on this, or do I file a seperat claim in smalls claims court, or what. also, do they have any chance at actually getting $25,000.00 from me for something that was supposed to cost me $4990.00, which they decided to remove. Also, their court papers stae that I never intended to pay for this item which is rediculous as I did put money down and make a payment before I cought the problem with the loan. If they came and removed the system when no payments were late or anything didn't they breach the contract?..any help would be appreciated

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