Can a business charge a cancellation fee if a customer cancelsa job?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a business charge a cancellation fee if a customer cancelsa job?
I’m the owner of a business that offers a free drop off and pick up service, if the customer drops off a job with the intent of having the work done then decides to cancel, can we charge a cancellation fee.
Asked on February 7, 2012 under Business Law, Connecticut
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Cancellation fees are legal, as long as the customer either explicitly, or at least implicitly, agrees to it. Best would be if you could have customers sign work orders or agreements which indicate there is a cancellation fee. If that doesn't work, as a practical matter, with your business model, have the cancellation fee prominently displayed in some fashion (as the point of drop off; left behind on any materials you leave when you pick up; etc.) to make sure there is notice of the cancellation fee; with notice, the customer can be said to have agreed to it. (Think about the signs in many doctor's offices, which say that there is a cancellation fee if an appointment is not cancelled sufficiently far in advance.)
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.