Spring, TX asked in Business Law for Texas

Q: I closed my business this week and now members are asking for refunds on their accounts. The contracts state no refunds

What are my legal financial responsiblilities? This was a service based business

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1 Lawyer Answer
John Michael Frick
John Michael Frick
  • Frisco, TX
  • Licensed in Texas

A: As long as you provided all of the services you contracted to provide to your "members," you have no obligation to refund their payments if your contract expressly provides no refunds.

Where some service-based businesses get into trouble is when they contractually obligated the business to provide services indefinitely or for a term that extends past the closing date of the business. In that situation, you cannot keep the "member's" payment if you are no longer going to provide the service the business contracted to provide.

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