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I operate a small bakery business out of New York. My

I operate a small bakery...
I operate a small bakery business out of New York. My question is do I need to have a cake contract for small orders like a birthday cake? Or do I just need a contract for wedding cakes? Is there a minimum purchase amount required before I have my customer sign a contract?
Can I list my terms and disclaimers on my invoice and would a customer paying the deposit be legally binding?
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Answered in 5 minutes by:
3/8/2018
DamienJD
DamienJD, Attorney
Category: Legal
Satisfied Customers: 5,152
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Hello: My name is ***** ***** I am an attorney. Please give me a moment to review your question. I may ask some questions to clarify issues.

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There are various ways you can handle it and all could be acceptable. I will try to outline for you.

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For the smaller order, you can use an invoice with a small deposit. That would suffice. For the larger orders, you can take a deposit and provide an invoice and put the terms and condition on it and have the customer sign it. There is not a minimum purchase amount. See, generally, for something that can be done within a year, there is no requirement for a written contract. It is just that a written contract leads to less dispute to what was agreed upon. So, there are various ways you can handle it. The greater the purchase price, the more detail you can use so later there are no misunderstandings.

We can discuss this more if you want to do so.

If you have further questions or you need further assistance, just let me know.

If not, please remember to rate my answer between 3 to 5 stars without any additional costs to you. That is how I get credit for answering your question. Best regards.

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Customer reply replied 4 months ago
would you say for orders under $150 I wouldn't require a contract and for orders $151 and above I would ask for the invoice to be signed?
Customer reply replied 4 months ago
Also which term is better to use? Retainer fee or Deposit? Is there a difference?

That is a business decision for you to make. Not a legal decision whether to use a contract for $151 or $150. You can even use a contract for lesser priced items if you wanted to do so.

Separately, the term Deposit is the appropriate term, not Retainer.

We can discuss this more if you want to do so.

If you have further questions or you need further assistance, just let me know.

If not, please remember to rate my answer between 3 to 5 stars without any additional costs to you. That is how I get credit for answering your question. Best regards.

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Customer reply replied 4 months ago
Thank you. I just have one last question. Would you be able to clear up the difference between the 2 terms? I have been told that if I say non-refundable deposit that legally its still able to be refunded because services weren't provided. Is this true?

You are welcome. If you provide the service, and they do not pay, then you can keep the deposit and sue for the remaining amount. If you do not provide the service and they change there mind, then they should be able to get their money back (more so as a courtesy and to keep customers). However, if you do the service and they change their mind before actually getting the product and after you put some effort into it, they would lose the deposit. I hope that makes sense.

We can discuss this more if you want to do so.

If you have further questions or you need further assistance, just let me know.

If not, please remember to rate my answer between 3 to 5 stars without any additional costs to you. That is how I get credit for answering your question. Best regards.

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Customer reply replied 4 months ago
Got it. Thanks again!

You are welcome!

Please remember to rate my answer between 3 to 5 stars without any additional costs to you. That is how I get credit for answering your question. Best regards.

DamienJD
DamienJD, Attorney
Category: Legal
Satisfied Customers: 5,152
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