A client paid me a deposit for programming a website. We has no contract. It was discussed via email and phone. I was unable to complete the website successfully but it was 90% there. I arranged for someone to take it over and they were not satisfied with the results. They want their deposit back. If they sue me will I have a chance? Can I be sued for loss of time and revenue as well? If I do return the deposit should I have them sign something limiting any further liability? Thank you!
1 Answer from Attorneys
It really depends on what was provided to them. They don't get to take value then say "I don't like" and not pay for your time and services. If there is no written contract then it is going to hard for them to show why they get all their money back. Now, if you provided nothing of commercial value and which is useless to them then perhaps they have a claim.
If you think you need proper advice here, I suggest that you consult with a lawyer in private and discuss your objectives in more detail. You can start by calling around to several for a free phone consultation, get some insights then pick the best fit to work with.
If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.
Our firm is now referred by the American Bar Association (see under the New York section): http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html
DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.