Deposit Deduction For Cancellation

Summary

Without specific cancellation terms, you can deduct reasonable costs from the deposit if a client cancels a project. Document all expenses and communicate clearly with the client about the deduction and remaining deposit. Consider consulting a local attorney for personalized advice.

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I am self-employed builder. My client sent me a deposit for the kitchen renovation. I have ordered and paid the kitchen from the supplier. The kitchen was ready for the collection and installation when the client cancelled the kitchen renovation. I would like to ask if I am legally right to take away the cancellation fee from the deposit and send her the rest of the deposit
Hi ****,
To assist you better, did you have any written contract or agreement with your client regarding the deposit and cancellation terms?
I have the estimate but there are no cancellation terms on it
In the absence of specific cancellation terms, general contract principles apply. Here are some points to consider:
- If there is no written agreement specifying cancellation terms, you may still recover reasonable costs incurred due to the cancellation.
- Document all expenses related to the project.
- Communicate clearly with your client about the costs deducted and the remaining deposit amount.
Do you need help drafting a response to your client?
So does it mean that I can take away £* of the deposit of £* when I write to the client that I am taking the cancellation fee of £* of the deposit to cover my time spend on the job and the loss of profit?
Case Rating: *
Yes, you can deduct £* from the deposit to cover the costs and time spent, as long as you can justify these expenses. Ensure you document all your costs and communicate clearly with your client.
Would you like assistance drafting a response to your client?
yes please
Case Rating: *
Sure, I can help you draft a response to your client.
Here's a sample response you can use:
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Dear [Client's Name],
I hope this message finds you well. I am writing to address the cancellation of the kitchen renovation project. As per our initial agreement, I had already ordered and paid for the kitchen from the supplier.
Due to the cancellation, I have incurred costs and time spent on this project. Therefore, I will be deducting £* from the deposit to cover these expenses. The remaining £* will be refunded to you.
Please find attached the detailed breakdown of the costs incurred. Should you have any questions or concerns, please feel free to reach out.
Thank you for your understanding.
Best regards,
****
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Feel free to adjust the details as necessary. Let me know if you need any further assistance!
please can you write me the response to the client that we are taking away £* of the deposit as the cancellation fee to cover our loss of profit as this kitchen renovation was cancelled at time when I was ready to collect it and install already
Case Rating: *
Of course, here is a response you can use:
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Dear [Client's Name],
I hope this message finds you well. I am writing to address the cancellation of the kitchen renovation project. As per our initial agreement, I had already ordered and paid for the kitchen from the supplier, and it was ready for collection and installation when the project was cancelled.
Due to this cancellation, I have incurred costs and a loss of profit. Therefore, I will be deducting £* from the deposit to cover these expenses. The remaining £* will be refunded to you.
Please find attached a detailed breakdown of the costs incurred. Should you have any questions or concerns, please feel free to reach out.
Thank you for your understanding.
Best regards,
****
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Feel free to adjust any details as necessary. Let me know if you need further assistance!