Legal Question in Business Law in Indiana

Deposits

If I receive a deposit from someone for a service, and have yet to send a written contract for the service, is the verbal contract still valid? If the client cancels the contract 1) Are they entitled to their deposit back? and 2) If so, how soon must it be returned?


Asked on 3/14/03, 12:47 pm

1 Answer from Attorneys
Samuel Hasler Samuel Hasler

Re: Deposits

You do not specify what the contract was for or that you have done anythng for the other person. Unless there is a requirement for a written contract, then the contract exists. Written contracts help people remember what they have agreed to - and relying upon an oral contract contract can get messy and expensive. So get them a contract. If you have done work for the other person, you may be entitled to reimbusement. Again, this gets messy without a written contract. Otherwise, they shoudl get their deposit back as soon as possible.

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Answered on 3/15/03, 9:44 am


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