Law on refund if goods not ordered

BrideCo

If as a bridal retailer you take a deposit with clear terms stating that deposits are not refundable. and the customer simply changes their mind, can they get a refund? Clearly they have entered into a contract, but if the goods are yet not supplied or in some cases ordered, where does the retailer stand legally?

bris

If it's in store then they are not entitled to a refund. You are entitled to your losses, which in this case would be loss of profit. This is the amount you would have made in the contract would have been completed.


On line orders are different read the Consumer Contract regulations for them.

unholyangel

Its a breach of contract. You'd be entitled to your losses caused by the breach (usually either costs or loss of profit). However, you should mitigate your losses where possible because that is how damages are awarded under law - you must take reasonable steps to keep your losses to a minimum and must not take unreasonable steps that increase them.

Try reading this CMA Guidance on unfair terms and consult a solicitor to draft terms of business for you if you are unsure.

In particular, the sections titled "retention of prepayments on consumer cancellation" and "disproportionate financial sanctions".

This is based on it being a face to face transaction in the retailers store/place of business. If it was a distance or off-premises sale then there are different rules that may potentially affect whether they'd be due a refund.