Chicago, IL asked in Contracts for Illinois

Q: Hello,Can a contractor charge 100% cancellation fee for a service?

I ordered 2 doors for 12K. I needed to cancel or prospered since my husband was in a car accident. The Vendor Cancellation Policy was 100%

They said they will charge me 12K either way, cancel or install. Is that legal?

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1 Lawyer Answer
James L. Arrasmith
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A: Hello! The legality of a contractor charging a 100% cancellation fee depends on the terms of the contract you agreed to when you placed the order and the consumer protection laws in your jurisdiction. If the vendor's cancellation policy explicitly states a 100% fee and you agreed to these terms, the vendor may argue that they are within their rights to enforce this policy, especially if they have incurred costs related to your order.

However, consumer protection laws in many areas provide for circumstances where such penalties may be considered unreasonable or punitive, especially if they don't reflect actual losses incurred by the vendor. It's essential to review the contract's fine print and understand your local consumer rights. Some jurisdictions might have provisions for unforeseen circumstances, such as a family emergency, that could potentially allow for negotiation or waiver of such strict penalties.

Given the significant amount at stake, it might be wise to consult with a legal professional who can provide advice based on the specifics of your situation and local laws. They could offer strategies for negotiating with the vendor or determine if the cancellation fee can be challenged legally. Communication with the vendor, explaining your situation and seeking a compassionate review of your case, might also be a step worth considering before moving towards legal recourse.

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