QLD Deposit refund for a failed business purchase

Discussion in 'Commercial Law Forum' started by Eloise, 22 April 2018.

  1. Eloise

    Eloise Active Member

    Joined:
    19 April 2018
    Messages:
    5
    Likes Received:
    0
    Hi
    I paid a deposit for a Market Stall business , the Vendor requested a 40% deposit on Feb 27th which was paid on March 2nd due to unforeseen circumstances I advised the vendor I was unable to proceed with the sale.
    At the time of the deposit being made no contracts were signed or Bill of sale supplied. After I advised I was not able to proceed a Bill of sale arrived with a clause that the deposit was non refundable.Nil mention of this earlier.
    I have requested the deposit minus 10% be refunded as I since found out that is the usual deposit amount but the vendors said they have sort legal advice and been advised.
    There was intent so deposit is non refundable.
    They are entitled to loss of potential work arrangements, potential sale, rent.
    Is there anything I can do ?
    Thanks
     
  2. Rob Legat - SBPL

    LawTap Verified

    Joined:
    16 February 2017
    Messages:
    2,045
    Likes Received:
    432
    So you paid a 40% deposit without any terms of contract (other than the price and amount of deposit, apparently)? Did you have any discussions about the terms? Was a draft contract sent to you? If so, what acknowledgment was there by you of those terms?
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  3. Eloise

    Eloise Active Member

    Joined:
    19 April 2018
    Messages:
    5
    Likes Received:
    0
    Hi
    Yes price agreed take over date agreed.
    Goods included in sale agreed.
    Agreed on training days .
    No mention of non refundable deposit.
    No draft contract.
    Nothing written only verbal agreement.
    Bill of sale only produced after advice given sale unable to proceed.
    Thanks
     
  4. Rob Legat - SBPL

    LawTap Verified

    Joined:
    16 February 2017
    Messages:
    2,045
    Likes Received:
    432
    Unless there was a clear agreement that the terms of the agreement were subject to being agreed to in writing, you've likely got a binding contract. Payment of the deposit tends to confirm and substantiate the agreed to terms. Whether a deposit is refundable, and the circumstances for that, are usually dealt with in the contract. That being said, termination for change of mind is not usually something that allows a refund. Then again, a 40% deposit is excessive for most business sales.

    Go over the draft document they sent you and see what that says about deposit, deposit amount and refund. Although not agreed to, this could be inferred as what they intended as it is the document they sent to you. You might have some scope to recover part of your deposit.
     
    Stop hovering to collapse... Click to collapse... Hover to expand... Click to expand...
  5. Eloise

    Eloise Active Member

    Joined:
    19 April 2018
    Messages:
    5
    Likes Received:
    0
    No draft sent only Bill of Sale sent after advice given sale was not proceeding.
    In that document says deposit not refundable.
    Thanks
     
Loading...

Share This Page

Loading...
gt;