In legal terms considered “liquidated damages” clauses, nonrefundable deposits are meant to protect the injured party in a contract, and not to act as a penalty. Customarily, an initial partial payment is used as a nonrefundable deposit when collecting funds on a contract. For example, 50% down and 50% at a predetermined date, with the initial payment being the nonrefundable deposit. Drafting a contract utilizing more of a sliding scale is a better way to go. In this CLE class clip, Caroline J. Fox Esq. details a more secure nonrefundable clause and payment schedule, that is friendly, yet effective.

Caroline J. Fox, Esq. is an attorney based in Richmond, Virginia. Her practice focuses on the needs of small businesses, with special emphasis on the design, creative, and technology industries.

In this CLE class clip, Caroline discusses nonrefundable deposits in the wedding industry.

You can watch the complete Wedding Law CLE class here:
Wedding Law CLE