I signed a contract with a lawyer 2 days ago, can I cancel today with no penalty and have my deposit returned>

This seems to duplicate a question asked earlier. Please see my response and those of my colleagues at http://www.avvo.com/legal-answers/i-signed-a-co...

The answer I gave there is the same:
You have the absolute right to fire your lawyer at any time. However, the lawyer is entitled to be paid for the expenses incurred and for the legal work he or she has performed through the termination date.

As for your deposit, Illinois allows nonrefundable fees but does limit them by requiring them to be reasonable. In general, the factors to be considered in determining the reasonableness of a fee include the following:
(1) the time and labor required, the novelty and difficulty of the questions
involved, and the skill requisite to perform the legal service properly;
(2) the likelihood, if apparent to the client, that the acceptance of the
particular employment will preclude other employment by the lawyer;
(3) the fee customarily charged in the locality for similar legal services;
(4) the amount involved and the results obtained;
(5) the time limitations imposed by the client or by the circumstances;
(6) the nature and length of the professional relationship with the client;
(7) the experience, reputation, and ability of the lawyer or lawyers performing
the services; and
(8) whether the fee is fixed or contingent.

Also, Illinois has new rules concerning fees - which are not yet effective and would not (directly) apply to your case, but can be informative. The new rules indicate that an advance fee or deposit may be collected, but any "unearned" portion would have to be returned. Depending on what type of law and what the attorney may have done in the 2 days since you engaged him, I would assume a significant portion would be unearned and should be returned (despite the fact that the contract indicates it is nonrefundable).

This answer is for informational purposes only and is not intended to be legal advice nor does it establish an attorney-client relationship. Please contact me to discuss further. Otherwise, you need to consult a local business lawyer to obtain legal advice that is tailored to your circumstances and facts. Good luck to you.