QUESTION
Can I get a refund from a purchase if the contract has a condition that I meet, even if it would be slightly unethcial to do so?
Asked on Oct 14th, 2020 on Contracts - New York
More details to this question:
I entered into a service agreement with someone for them to help me start an online business that they would work to scale up to $10,000 a month net profit. The signed contract stated that there would be no refunds except for the following condition: “However, there is one exception to the above “all sales are final” policy… If by 365 days your online business has not made at least $10,000 USD in NET profit, I will give you a full refund if requested AND let you keep everything we’ve set up together.” As of 10/14/2020, I have not come close to $10,000 net profit after signing the contract on 5/31/2019. There were no other stipulations such as the effort involved on my part, accounting for external tools or services like Facebook Ad accounts getting banned, etc. that were accounted for in this contract. All setbacks and other expenses were deemed "normal business expenses" as the purchase of this service was just for help optimizing everything to become profitable.
1 ANSWER
3 Awards
When it comes to refunds the first source of information is the contract. There is no information on whether you can get a refund or not. Now, if there is a phrase that says all sales are final but at the same time there is a clause that allows for refund, it may be possible the court leave both clauses without effect and interprets the language of the contract to determine whether a refund will be allowed or not. Now as to the "efforts" obligation, it is worth noting that if nothing is said a party is usually obligated to do its commercially reasonable efforts and to act in good faith. In conclusion, a more deep analysis look to the language of the contract is necessary before making any conclusions.
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Answered on Oct 14th, 2020 at 12:25 PM