What's t are my rights as a Florida contractor when a client backs out of a written contract regarding deposit money

Asked almost 2 years ago - Delray Beach, FL

The client backed out of a contract with me after I submitted for permit and purchased material for the job and placed it on site and then had to return it all. This client wants a full refund and I want to know what my rights are regarding this.

Attorney answers (2)

  1. Ralph H. Schofield Jr.

    Contributor Level 12

    Answered . If client has no agreed right to back out, the client is repudiating the contract. You may be able to sue for your lost profits. That's generally why you take deposits--to have something that will at least partially cover you if client backs out.

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  2. Thomas Fred Meyer

    Contributor Level 10

    Answered . You may have rights under your contract and you may have rights to file a mechanics lien against the property. Read your contract to determine what, if any, right your customer has to back out at this point. Your contract may specify what damages you may recover when this happens. If its silent, you should seek recovery of all costs you incurred to pull permits, buy, deliver and return materials. If you are holding a deposit, you may be able to offset it to reimburse yourself for allowable damages. You will want to review this all with a lawyer who will review your contract, explain your lien rights and then send the appropriate demand letter to your customer to refute their demand for a refund and assert your rights and demands resulting from the customer's breach.

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