Sunday, December 4, 2011

If terms of signed contract call for 50% deposit but deposit is not paid at time of signing, is contract valid

After I signed the contract, the Superior Shutters rep asked for a 50% deposit. I said, "I didn't bring my checkbook." He said, "You can mail your deposit check to us." Shortly thereafter, I consulted with a couple of other shutter companies and decided I didn't want shutters from Superior Shutters. I hadn't heard from them, anyway, by way of follow-up regarding the deposit, so I surely didn't think they were going to order the shutters without a deposit from me. They never called to say, "We're going to go ahead and order the shutters without a deposit." I was surprised when, six weeks later, they called and said, "Your shutters are ready to be installed." I thought it odd that a company would order custom made shutters and take the risk, by not collecting a deposit, that I ultimately would accept them. In any event, I don't want the shutters. Must I accept them? Would Superior Shutters prevail in Small Claims Court? They say they can place a lien against my house!|||They're right. Just because you didn't meet the terms of the contract was no reason for them to breach their undertaking.


In hindsight, what you should have done is notify them immediately and told them of your intentions. Most states and provinces have a 10 day cooling off period for this purpose.





At this point they have incurred real cost and are entitled to Specific Performance on your part or Compensation for Liquidated damages.





You will probably find that going through with the purchase will be far more financially prudent than to pursue this through small claims. It has been my experience that the judge will grant them a minimum of out of pocket expense, and legal costs and you still won't have your shutters.|||You better consult with a lawyer and yes, they


can place a Lien in your property.|||Did you sign the contract? If you signed, then you owe the money.





Buyer beware.|||I'm afraid you've gotten yourself into a legally binding contract. Anyone can say, you should have done this, you should have done that, but human tendencies all lend for us to do things of this nature at least once in our life. You made a mistake by not contacting Superior Shutters within the ten day cooling off period. However, the shutters were probably ordered by then, which was a big mistake Superior made themselves. It's a round table error.





Of course they 'say' they 'can' place a lien against your house; they can say anything they want to scare you into taking the shutters, if indeed they do have them. I would call their bluff (at the moment) and tell them you are coming in and look at the shutters. There's nothing in the contract that says you must accept them, if there is something wrong with them. Get the idea? Tell them you have discussed this situation with your Attorney and he/she explained to you that Superior Shutters should never have ordered custom shutters, without the 50% deposit, (which incidentially is their markup). Tell them it's their mistake.





The worst possible senario is they would attempt to put a lien against your home, but probably won't because it will cost them additional monies for this process in court, and as long as your house is owned by you, they'll never get paid anyhow. It's only when you sell the house. Good Luck!

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