Legal obligations with deposits

 19 June 2009 17:03

A deposit is a payment made when you have the intention of buying goods or a service.

When you pay a deposit a contract is created between you and the supplier so you should be clear about your obligations, for example, when and how much each payment is.

On their part the supplier should make it clear when they will supply the goods or service. It’s always worth getting this in writing, even if there are relatively small amounts involved.

Normally, you would not be entitled to the money back if you changed your mind because you would be in breach of contract.

But if the supplier has not suffered any loss against which they can retain the deposit or any part of it, you can approach them for repayment.

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