Im unsure why there seems a reluctance to tell buyers the fact their deposits are non refundable when clearly it is not a widely known practice.

Is there a reason to with hold this info?

clarity is better? no?

I don't remember anyone ever saying that a deposit was refundable??  I figured it was just assumed that it wasn't.  Who would put down a deposit without intention to purchase??  

Who would buy things at Canadian Tire, "just in case" and then return them if they don't use them?

Donnie, if I remember correctly you are from the UK, correct? Perhaps certain practices hare are less customary over the pond.

I remember a friend of mine who was selling hottubs in the UK about a decade or more ago. He was astonished that business was done on a handshake and without deposits and he hadn't yet seen anyone reneg on a deal.

Also, my wife pointed out that in London, people are a lot more considerate. She travelled there many times on business and took notice that people were more civil on the tube; no pushing, gave up seats for women, etc.

In teh UK the onus is on the seller - not the buyer...however I actually thought canada was more in favour of buyers than even the UK.   I know returns are very easy here in canada for example.

Im with the original poster - hes asking cause hes wanting to know so I guess its not as well a known practise as one might think?

so if this thread does one thing it shows that NON REFUNDABLE should be listed as some people dont see that as the default...  I dont...   

I don't think the nature of deposits it that ambiguous...I think most people assume that a token deposit, such as $100, is non-refundable and that's why the terms are often not clearly stated.  It also makes me feel a little dirty to have to add "...and the deposit is to be considered non-refundable."  

I certainly don't see why in the case of any ambiguity, the deposit should automatically be considered refundable.  Why is that the default position ?  If the seller was at fault for not stating that it was non-refundable, then the buyer is equally at fault for not stating the contrary.  Perhaps it should depend on who introduced the need for a deposit into the sale.  if the seller asked for a deposit and did not clearly state the terms, then the default should be "refundable."  If the buyer willfully offered a deposit, or perhaps even insisted upon one, then the deposit should be considered non-refundable if the terms are not stated.

Maybe we need a poll ?

POLL!



Now its getting exciting!

I have to agree with those saying a deposit is non-refundable.  I do however think it should be stated (or restated) to the purchaser prior to accepting it.

Unfortunately, the type that renegs on a deal and wants the deposit back, is also the type that doesn't care what they agreed to in the first place.  I don't take deposits on things I sell any longer for that very reason.  I do business on a handshake daily, and for the most part, it works great.  But, there's always the one that has no pride or honour and who's word means nothing.  With those types, there's no remedy anyhow.

Question: What is the value of leaving a token deposit (say $100 for example, not thousands)?

If it is assumed to be refundable what does leaving the deposit accomplish?

On a pinball, unless I know nothing of an individual, I dont bother taking  deposits. And, for someone I know I dont need their $100. either. That's part of being in a hobbiest community. However if a newcomer comes along that is fairly distant and wants me to hold for several weeks (this has happened) I will take a deposit, albeit it not a big amount, as a show of faith. If that individual backs out of the deal, after I held the machine 6 or 8 weeks I would be shocked if they expected their modest deposit returned.

Ignorance isn't a defence at law. Seller's DON'T have to state that a deposit is NON REFUNDABLE, because the onus is on the Buyer to do their due diligence before a purchase and determine that, by default, without evidence to the contrary (written or verbal) I think it's now clear that deposits ARE considered non refundable.

I did find at least one definitive government reference on deposits and consumer law here:  http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca02478.html

Consumer laws vary by Province, but the Federal Office of Consumer Affairs states:

"Deposits

A deposit is usually a lump sum of money required to reserve or hold a product or service. Whether it's a deposit on a vehicle, a hall rental, a grad outfit or a photographer, be sure that you want the product or service. If you change your mind, you are not, by law, entitled to get your money back. Be sure to ask what the conditions are before you put down a deposit, and only put down the minimum amount required. "

There are some differences in dealing with "businesses" vs "individuals" but in Ontario: http://www.sse.gov.on.ca/mcs/en/Pages/Buying_Merchandise_Refunds.aspx

"    * Before making a deposit, be certain you’ll want to carry through with the purchase. Not all stores will let customers change their minds after they’ve put deposits on items or arranged to purchase through layaway plans.
    * Never make a deposit or partial payment without getting a written contract and receipt acknowledging your payment. When the total to be paid after the deposit exceeds $50, the law requires that these “future performance agreements” must be in writing. If the business complies with the law, you’ve entered a contract and are responsible for paying the full amount by the agreed date."

There, let's stop going around in circles now.