If I owned a massage therapy business but had to close it, am I obligated to refund money to people who have gift certificates that they have yet to redeem?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
If I owned a massage therapy business but had to close it, am I obligated to refund money to people who have gift certificates that they have yet to redeem?
I can no longer provide services due to back surgery.
Asked on May 20, 2014 under Business Law, New York
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 10 years ago | Contributor
Yes, you would typically have to refund money which has been paid for gift certificiates but which cannot be used or redeemed; you are in breach of contract by not providing the services paid for. If the business was a corporation or LLC, you would not be personally liable for the amount--they could only sue the corporation or LLC, not you personally. If however the business was not a corporation or LLC, you could be personally sued by anyone seeking a refund who does not get it.
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.