Legal Question in Business Law in Maryland

Contract prformance and payment

If a company that provides training services is solicited by a group to do training,a contract is signed and the outside group then decides they do not want training, after payment in full has been made, must the money be refunded? Both parties signed the contract, prepared by the company that does the training. It is silent as to refunds but does have a termination clause that only allows termination for cause. The terminating groupo did not follow the steps laid out in the termination clause. Additionally,what if some of the training has been performed but the outside group refuses to make scheduling allowances so that the remainder of the training may be completed? Can they be forced to pay the full contract amount?

Thank you for your help.


Asked on 3/29/00, 10:53 am

1 Answer from Attorneys
Daniel Press Chung & Press, P.C.

Re: Contract prformance and payment

Absent a contractual provision, as to the first question, the training company is probably required to refund any windfall, but not its anticipated profits. If by cancelling the co. was able to get another gig that it could not have otherwise done, it would have to credit that amount. If the cancellation was so late that the trainers had to sit around twiddling their thumbs and had to be paid by the training co., the customer gets nothing.

As to the second question, the same principles apply as to the unperformed portion.

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Answered on 3/31/00, 7:40 pm


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