Is a deposit legally binding?

crispsandwich

I put a deposit on a guitar a couple of weeks ago, as I did not want it to be sold before I could afford it.

However, I have come to some realisations recently about my stupidity with my money, and so have decided I do not NEED the guitar. I can't ring the shop to try and cancel the order for a couple of days due to working commitments, but my friend is convinced that not only will I lose the deposit, but the shop will expect me to have the guitar and pay the remaining balance. Is this correct?

I understand the point about the deposit, but have I entered into a contract here? My receipt states the amount I've paid, deducted from the cost of the guitar.

Many thanks

agrinnall

I'm not very sure of the strict legal position, it could be right that you've entered a contract to buy that they could seek to enforce. However, I really can't see that happening, and to be honest I think for something like a guitar there's a pretty good chance that they'll give you your deposit back as they'll be able to sell it to someone else for the same price so they won't have lost out. I would just go to the shop, explain your reason for changing your mind and see what they say.

s_b

get friend to ring shop then
send them a letter
email them
they are holding your item or even possibly having it made to your spec so yes you have made a contract
the longer you leave it not telling them you arent going to fulfill your side of the contract the more they will consider sending the boys round or if you live in the posh end of the country they might just take you to court and remember when they win you will be paying all out of pocket expenses too when owner has to shut his shop to see the beak
me?
i would just send the boys round:D

arcon5

If the item is made to spec there is a good chance they have reasonable grounds to reject your cancellation, if not then your simply in breach of contract by cancelling - it's not as scary as it sounds, they can simply retain provable losses (minimal).

See here: https://forums.moneysavingexpert.com/discussion/comment/42873192#Comment_42873192


How much was the deposit and how much is the item?

crispsandwich

arcon5 wrote: »

If the item is made to spec there is a good chance they have reasonable grounds to reject your cancellation, if not then your simply in breach of contract by cancelling - it's not as scary as it sounds, they can simply retain provable losses (minimal).

See here: https://forums.moneysavingexpert.com/discussion/comment/42873192#Comment_42873192


How much was the deposit and how much is the item?

The item was not made to spec. It costs £670, and I put down a £70 deposit. Many thanks for the replies so far

cardinalbiggles

To be honest if you paid a deposit and the shop have been holding on to it for you there is not really any cause for complaint if they keep your deposit.

That's what a deposit is for its not the shops fault that you have decided its not for you. You have agreed to buy something and they have agreed that while you are not paying right now they will not sell that item until you have the cash.

I suspect I will get shot down for this but at the end of the day that's what a deposit is all about.

Equaliser123

cardinalbiggles wrote: »

I suspect I will get shot down for this but at the end of the day that's what a deposit is all about.

That may be your opinion, but it is not the position in law.