I have a customer that prepaid for product, that i haven’t been able to provide in a timely manner.
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I have a customer that prepaid for product, that i haven’t been able to provide in a timely manner.
They are now threatening to to file charges if I don’t provide a
partial refund along with a months rent for their facility and deliver
the equipment by a date that I won’t be able to meet. This Saturday.
I will be able to satisfy the obligation within 10-14 days, but I
probably couldn’t do it any sooner than that. I live in PA.
Asked on June 14, 2016 under Business Law, Pennsylvania
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
You won't face criminal liability (e.g. charges), unless they can prove you acted with criminal intent (e.g if based on the evidence, it's clear you never had the abilty or intention of fulfilling the order, but rather attempted to defraud them out of money). But you can be sued by them, based on breach of contract (not honoring the deal) for the return of their money, if you missed the agreed upon (or, if no exact date was set, a reasonable time frame) for delivery; they could also sue you for any costs the delay caused, such as wasted rent (rent paid when they couldn't use the facility or space due to the delay). Since lawsuits take time and cost both sides money, it may be in both your interest to negotiate to some settlement.
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