New Jersey  |  Business Law

Legal Question

Asked on: 11/18/13, 1:04 pm

Hello,

Our company is doing custom furniture. One of our clients ordered a custom table. We sent him the invoice with the terms and conditions.In there, there is a cancellation section stating that "Orders are not subject to cancellation. If cancellation is requested and accepted by us with their written acknowledgment, the Buyer will be charged a 25% cancellation fee"

The client approved the invoice and send us the 50% deposit. Then we start working and provide the client with drawings and samples for approval as he says it was urgent. Since then, the client changes his mind already 3 times about the specifications. Now he wants to cancel the order after 2 months of back and forth. He made his own calculation of how much time we spent on the drawing and said that as the production did not start, we can keep a very small amount and reimburse him most of the deposit. He had at the end that he hopes we can resolve this gently.

It seems obvious for me that we should charge the entire 25% cancellation fee especially considering all the time we spent. What is the legal view on this? What should we do?

Dan

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