I am the owner of a gym. A minor signed an agreement (we dont do contracts that bind you by a set length of time) and used our facility multiiple times during the 6 months they were a member. The member even suspended his membership because of school and then came in to cancel it. Upon being told there would be one last billing that would occur, member said he was a minor and any money we collected he should get back. While i understand it was a mistake on our part for not looking at his age, doesnt him using the facility for 6 months constiture fraud?? He supplied a valid checking account in his name for us to use for monthly payments as well.
State/Country relating to Question: Michigan
We have not tried anything yet. We just received notice from the BBB that the members mom filed a complaint because we will not refund him the money.
Good afternoon,I'm sorry to hear of your dilemma, but all is not lost.To the extent that he paid the money and utilized the services, you don;t have to pay him the money back. However, as you can not enforce a contract against a minor, you will lose on the money that he has not paid, unless he pays you voluntarily.As regards XXXXX XXXXX issue, you may have a difficult time proving fraud, as you would have to prove that he signed up with no intention of paying---and he did pay.The mom is out of line. It is no different from if you owned a store and sold him a coke and then he wanted his money back---too bad for him.I wish you the best in 2011.Because I help people here, like you, for a living---this is not a hobby for me, and I sincerely XXXXX XXXXX abiding by the honor system as regards XXXXX XXXXX I wish you and your family the best in your respective futures. Would you be so kind as to Accept my Answer so that I may be compensated for assisting you? Bonuses for greatly informative and helpful answers are very much appreciated. Thanks Again, Doug
There is no outstanding money that is owed to us. His mother is arguing that because he signed up as a minor, any money payed to us needs to be refunded because he was under 18 when he joined. I was simply trying to use the case for fraud that he knowingly intended to sign up and use our facility even though he was a minor. So the answer would be they can argue all they want, but we dont have to refund anything, even if he was underage at the time of signing?
Good afternoon,There is law going both ways in this type of situation. As you are not seeking to enforce a contract, you might just take a wait and see approach. You have little to lose by waiting to see if the kid or his mother files suit in small claims court. I believe that the court might well find in your favor, given that the service paid for was used. And feel free to argue the fraud issue if it ever gets to a small claims case.Doug
I am a practicing attorney with more than 27 years of experience in the legal field.
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