Legal Question in Construction Law in California

Usually, a deposit is given at or near the time a contract is formed, and the refundability of the deposit will depend upon the express terms of the contract and the circumstances surrounding the depositor's desire for a refund. In some cases, courts have held that a construction deposit becomes non-refundable, or at least not fully refundable, when the contractor first takes steps in preparation for his performance under the contract, such as purchasing materials, or possibly just refusing other jobs. On the other hand, courts would tend to order a contractor to refund a deposit if the contractor delays starting the work well beyond the agreed-upon starting date, or turns out to have misrepresented his ability to perform the work, possession of a license, etc.