Customer wants to cancel job after work has started and deposit payed

[mountainmike]

A customer approached me to do some work for them at the beginning of feb 2022. I didn't have a meeting with them until Feb 22nd. I wrote them a quotation, sent them the T&Cs and sent them a deposit invoice. They asked me how long it would take to deliver and I said around 4 weeks to complete. I wasn't aware of a specific deadline.

3 weeks in, I have started the project and when I asked the customer a question today, they said it's too late, we want a refund and to cancel the project because I've started it too late. I've put 7 hours in so far so I told them I will refund them the money from the deposit after I have taken an amount to cover the work done, based on a pro rata rate.

The T&Cs state this clearly. The customer is now saying they want the full deposit refunding and I am refusing. There terms state that if a customer wants to cancel a project, I will deduct the hours worked from the deposit.

I have told them that I can easily complete the project before their product is launched in 10 days so I don't understand why they are cancelling and more the the point, why do they expect their full deposit back.

I wanted to check with you guys to see if I am on the right side of the law.

[Sam101]

Sounds as if you are being fair and reasonable. Surely they do not expect you not to be paid for the work you have done. It sounds like they have had another quote at a lower price and are trying to just get away with not paying.

[mountainmike]

Yeah it sounds that way or maybe their business plans have fallen through. I think what they will try to do in small claims court, is claim that i'm in breach of contract for not starting the project in there idea of 'on-time'. The contract doesnt state a specific date for completion, it only says how long the project should take to complete from start. I'll have to see if they take it further.

Cheers for your help