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Business buy gone wrong. How to get deposit back?

Canoga Park, CA |

I gave a deposit to buy a business after I gave him the money he had the agreement drawn up & the terms were unreasonable like wrong dates & other things. I have not signed anything. How do I ask form my money back? Can he take any fees out of the money he is holding? I paid with a check that said deposit for business on it.

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Attorney answers 5


If you didn't have any sort of agreement before you gave up the deposit, it is going to be difficult to get the deposit. You will have to provide evidence that the deposit was refundable.



The documents he wants me to sign will make me commit perjury & I'm not comfortable with doing that. Does that make any difference?


I must respectfully disagree with my colleague who opines that you are not entitled to a refund of your deposit. There are many reasons you might be entitled to a 100% refund of your deposit. You should personally consult an attorney to who can review the exact facts with you and advise you of your options going forward. Good luck.

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I do not know how much is involved in the deposit, but I would expect it is enough for you to consult with a local lawyer who handles such matters to determine whether you should retain counsel.

No information provided in response to these questions can be relied upon in any way without further personally consulting with Attorney Kerrigan and Attorney Kerrigan consulting personally with you regarding your specific legal situation.


It really depends on the specific facts of the case. If the deposit was not for actual "services" provided by the buyer in arranging the sale, but as more of a downpayment, you might have a potential claim for unjust enrichment and other equitable remedies. You should definitely consult an attorney.


Time and facts are essential to your matter. A competent attorney will help investigate your matter and may be able to put together evidence to illustrate wrongful conduct (if there was wrongful conduct). Good Luck.

This answer should not be used as a final ruling on your case as more facts are needed to fully understand and expound upon your legal inquiry. This answer should be used a short introduction to the legal theories that may apply.