When a buyer backs out of a deal, is the deposit refundable or not?

[alec_fishy88]

As above, lets discuss!

I just have one buyer who has backed out of a deal.

Deposits are assurances given when holding on to a item. Should it be refundable?

Personally, I think not but the buyer keeps insisting.

First, we agreed on a price. Then, a deposit of 50 bucks is paid out of the agreed 450bucks.

Now he suddenly lowers the remaining amount to only 300, which is a 100bucks lower than the agreed price or have to postpone the deal. However, I have a pending deal which I need the money for by the deadline promised.

I told him that if this is the case, then its 400 as agreed or deposit gone.

What do fellow softies think of what i'm facing?

 

[dudelove]

no. the reason for deposits in the first place is an assurance that the buyer doesnt back out. if he for some reason has to back out, too bad the deposit is non refundable.

 

[teokiatuan]

keep his money la

free cash $$$

 

[jskadiang]

Keep the money, that's the whole point of a deposit.

 

[retardedrummer]

keep the money!!!! And if he keeps insisitng , refer him to this post

 

[evident]

If the deposit is refundable, then what's the point of the deposit? Let he who has a mind, use it.

 

[ciki]

no refund, thats what a deposit is for...isnt it? else everyone will be doing the same i suppose?

 

[guitarsan]

Keep the deposit. End of story.

 

[wyldeboon]

deposit where can refund!!

refer him to this
http://www.thefreedictionary.com/deposit

 

[hahaxz]

keep the money dude. If he insists, sue him. You will win the lawsuit anyway lol

 

[boyl]

i think it is not as clear cut as everyone seems to be saying.

i think it is important to see the initial agreement.

was it mentioned or stated that the deposit is unrefundable?

if it was mentioned and agreed by both party, then really, there is no room for any argument.

if, however, there was no agreement of any sort regarding this, then really it is open to interpretation and the buyer is not wrong in asking for his deposit back.

in my opinion, initial agreement is what matter. if there was none, it is really disputable.

 

[zerstorer]

In the absence of any prior agreement, a deposit should not be refundable as it defeats the purpose of collecting it in the first place.

The only time when a deposit is refunded, is when the SELLER reneges on his offer to sell.

 

[hardcore]

Be a reponsible buyer.
Ask everything and anything before u give seller money.
When u meet a seller, never be alone.

Seller can just say "Did you give me $50?"

 

[jutawansg]

KEep the Money

This is what we call Buy and Sell transactions:

Buyer offer
Seller Counter offer

Offer accepted. Buyer pay deposit.

Deal is ongoing till full payment and exchange of products/services with money or vice versa.

If Buyer could not complete the deal within certain dateline, deposit will be forfeited

Seller cannot sell to anyone unless the buyer could not complete the deal

 

[shinobi]

it all depends on the seller.

the seller spells out the conditions of the deal.

it is then up to the buyer to accept these conditions. if the buyer makes a deal, he agrees to these conditions.

anyone who breaks these conditions will be at fault. of course, the seller can also reserve the right to change these conditions at any time.

anyway i don't understand the rationale of deposit or reserve or bullshit.

i'm not gonna accept a partial payment to hold an item for some guy, and then forgoing the chance to accept FULL PAYMENT from other prospective buyers within this holding period. if you don't have the money now, call me when you have the money. i will always benefit from receiving immediate payment. i don't owe anyone the privilege of holding an item, it doesn't benefit me at all.

that's why i say price fixed. no reserve. no trades. its as simple as that.

if the seller is wishy washy and doesn't make his terms clear, that gives an opportunity for miscommunication or people to take advantage of the situation.

 

[biopromax]

and what if the seller who collected the deposit money and back out or runaway?

 

[boyl]

despite the 'common understanding' of what deposit is and how it should be, one must not assume that it is always the case in every scenario.

it is only logical that one will try to act in ways that best serves his/her interest(s). of course there is exception, in the form of altruism, of which we are definitely not discussing here.

based on that assumption, in the case where no prior agreement made, the buyer will assume that in any given circumstances whereby the deal is cancelled, he/she will be able to get his money back. the same way goes to the seller (he/she retains the money).

i'm not saying that the buyer is right in asking for his/her money back, but i'm pointing out the loophole in which he/she can argue for.

 

[glentiaw]

i say no prior agreement. no refund.
defeats the purpose of a deposit.

 

[alec_fishy88]

If this is the case then everyone will start asking for the deposit money back, which IMO, defeats the purpose

 

[XLayaR]

Don't pay him back lah, heck care. Now take your product and try to sell it again since he does'nt want to honor the agreed price. He shouldn't have paid the deposit in the first place.