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i am a designer/architect and have a contract to design a remodel for a church building. the agreement is that they would pay me $5000 deposit up front and the remainder when the drawings are completed. the client signed the contract paid me the 5k and after a few weeks of us working on it they decide not build the church addition anymore do to budget cuts and are asking for the 5k they paid up front refunded. they say they will take me to court for it if need be. should i be worried, negotiate a lower refund, or stand firm on my contract?
State/Country relating to Question: Oregon Already Tried: so far i told the clients that we have already done an extensive amount of work but they believe it was not worth the 5k. i told them the most i would refund if any is $1,000. they did not accept this.
If you have a contract and performed, you have no reason to compromise except to make payment easier and quicker.
make payment easier and quicker?
If you have the contract signed and the deposit is not refundable therein, they have no legal basis for pursuing you and are likely just trying to scare you. I would be surprised if you are sued. The case would be dismissed.
one more question, my contract does not state that the deposit is non-refundable it only states "payment due at project start: 5,000" and the remainder 2,000 to be paid upon completion. am i still obligated to refund even though we did work and they signed agreeing to that upfront cost?
That is fine. They would need to show you breached the contract or that it says that it is refundable.
Attorney
Licensed attorney helping individuals and businesses
thank you so much, this was a great help!
Good luck!