Q: Contract/money exchanged for a remodel project with ho-owner in Early September. HO wants to now cancel and get refd
Time and material cost and possible of it changing was made clear from the start. Order was delayed and arrived wrong (this last monday). Lumber company was willing to except fault for mistake and meet us half way on materials cost increase. Homeowner eminently cancels and whole project and demands an immediate full refund. We are out time and money on this project, he feels he should get full refund. We made it clear that materials could go up and that final cost was not a definite. Do i owe him a full refund? Do i have the right to hold his downpayment until materials have been reimbursed to me? As materials are sitting at his residence and he has family/young kids in town for holidays. I could be charged for damages to materials.
Homeowner is the one canceling contract, we were set to start, have started work and had scaffolding set up, ready to go. How much is he owed back? Is he in breach of contract? We feel we should have time to be refunded before refunding him.
A: You ask a lot of great questions. I suspect that you do not owe a full refund and I question the homeowners right to cancel. But, the answers to these questions are found in your contract. I recommend you bring your contract to an attorney to have it reviewed along with your facts and expenses. The the attorney can advise you how to proceed and potentially respond to this homeowner on your behalf.
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