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Chris The Lawyer
Chris The Lawyer, Lawyer
Category: New Zealand Law
Satisfied Customers: 23072
Experience:  38 years qualified as a lawyer; LLB, MMgt and FAMINZ.
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Can a retail store keep 20% deposit of a layby worth $3800.I

Customer Question

Can a retail store keep 20% deposit of a layby worth $3800.I cancelled layby and they charge a fee 20%. I paid $760 deposit. Seems a 20% fee is not a reasonable amount as per fair trading act.REGARDS ALISTAIR
Submitted: 1 year ago.
Category: New Zealand Law
Expert:  Chris The Lawyer replied 1 year ago.
Under contract law if you are a buyer and cancel a contract, without a breach of the contract, the seller is entitled to damages for the lost sale. This is calculated on the costs of the sale and whatever the item was sold for and any lower price they may have obtained, than the price you were to pay. This is the loss of the difference between the sale prices. But they cannot arbitrarily keep 20% if that exceeds the actual losses. If they have done so you could claim in the Disputes Tribunal