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Jenny
Jenny, Solicitor
Category: Law
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I (as the LTD business) paid a deposit on some machinery

Resolved Question:

Hi
I (as the LTD business) paid a deposit on some machinery and can no longer afford to pay the rest due to slow paying customers. There was a handshake but no official order given. Can I get my deposit back or do I have to accept that the deposit is lost and walk away?
Many Thanks
Stpehen
Submitted: 1 year ago.
Category: Law
Expert:  Jenny replied 1 year ago.
Hello my name is ***** ***** I am happy to help you today. Was there a purchase order form or any other terms and conditions when you placed the order originally?
Customer: replied 1 year ago.
There was no purchase order. Just a card payment deposit at their premises. I told them that we would collect the machinery and pay towards the end of September, but due to customer late payments it's not been possible. Right now I can't afford to pay the balance and they want to charge me storage.
Expert:  Jenny replied 1 year ago.
How much have you paid as a deposit? Did they have to make the machinery in any bespoke way?
Customer: replied 1 year ago.
£2k deposit. £16,800 left to pay. The machinery is second hand. Cheers
Expert:  Jenny replied 1 year ago.
OK no problem, did they have to source this machinery for you or do they stock it in any event?
Customer: replied 1 year ago.
They had it in stock due to a PX from another customer. They hold a lot of machinery in their warehouse selling new and used equipment.
Expert:  Jenny replied 1 year ago.
Hi the bad news is that you will not be entitled to your deposit, if you entered an agreement to purchase the machinery and there is nothing in writing then there are no cancellation terms or right to have the deposit refunded.
This means that you will be in breach of contract, unfortuantely if you fail to purchase the machinery, technically they could try to sue you for damages in breach of contract for failing to fulfil the purchase.
If there are no written terms setting out storage fees then you do not have to pay them but bear in mind that they may try to take some action if they suffer a loss.
If they can easily sell the machinery on then it will be less likely they will be able to demonstrate a loss.
If you have any further questions please do ask. If I have answered your question I would be grateful if you would take the time to rate my answer. Thank you and all the best.
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