I sent a bank transfer to an Indian company for the value of U$5000 front payment before having a signed contract from both sides. The money is the first payment of u$10,000 for the development of a website and an app. Now they are changing the terms of the contract that we were suppose to sign. My question is “can I cancel the deal and fight for a refund legally?” since they haven’t delivered anything and there is no contract signed. The payment was made to the company’s bank account and I already checked that the company is real and registered in the Ministry of corporate affairs.
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Before signing a contract there are offers and counter offers by the parties. Nothing's been decided yet.
You shouldn't have sent the money.
Anyways you have a right of refund as you haven't signed on the dotted line.
Negotiations are going on.
You should ask them to initiate refund. Send them a legal notice.
If you do not like the conditions of the contract or not willing to go ahead with the proposed agreement, you may communicate your decision to cancel the agreement/contract in writing and send the same by post or courier service while you can send a copy of this notice through email also for confirmation.
In the notice you may demand the return of the amount paid by you as advance immediately within the period that you may be specifying in the notice.
If the company is not responding or complying with your demands, you may plan to resort to further legal actions for recovery through a court of law.
Refuse to agree for changes
call upon company to refund advance received
if they refuse sue company to recover advance payment made by you
Dear sir/ma'am,
Since you had an oral contract and on that basis, you paid the first part of the payment.
You can seek the cancellation of the contract by paying the cancellation fees if applicable.
Fighting for the refund may not turn very fruitful as the company has not committed any fraud, misrepresentation or mistake and it is a registered and real company.
Furthermore, keeping in mind that there was no contract signed for the same.
Thank You
1. What are the terms and conditions of the contract in connection with its cancellation and refund of the advance amount paid?
2. Was there any penalty clause?
3. You can cancel the contract if the terms are not complied with and ask for refund of the advance amount paid by in consonance with the refund clause mentioned in the said contract
Was the contract draft even shared with you before you made the first payment?
If the draft was shared then what is your apprehension in signing it?
Is there something in the contract which bothers you?
- As per law, any service provider whether online or offline, cannot be allowed to forfeit the service fees or consideration received in advance in case the consumer has not availed the service.
- Further, the clause that the service fee once paid is not refundable is unconscionable and unfair trade practice as well as voidable and therefore not acceptable.
- Hence, the said company is bound to refund your deposited amount on your cancellation of the contact before development of the website and app .
- Further, the denial of refund of deposited amount is also against the public policy and hit by the provisions of Indian Contract Act,
- You can issue a demand notice, and on refusal the same file a complaint for the deficiency in service under the Consumer Protection Act.
Its deficiency in service and unfair trade practice. Send them legal notice and call for the refund.
1. The terms of contract cannot unilaterally be changed. You can send lawyer's notice to protest the proposed change and declare that you are not consenting to the new terms.
2. You can seek refund if they attempt to breathe new terms down your neck.
