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[Foreign Trade Little Knowledge] Does the deposit need to be refunded when the customer requests to cancel the order?
Jul 26,2023
If the customer paid the deposit and we have paid the deposit to the factory, and the factory has started to produce the goods, and then due to various reasons, the customer does not pay the balance and asks to cancel the order, does the deposit need to be returned to the customer?In this way, wouldn't we suffer losses? Especially when the goods are nearly completed, our losses will be even greater. Although this situation is relatively rare, I would like to ask, how should we deal with it in this situation?
The deposit is a kind of security deposit agreed by both parties, and we have the right to withhold the deposit to make up for the loss in the event of a breach of contract by the other party. Under contract law, normally,The deposit paid by the customer does not need to be refunded.This is in compliance with regulations.
According to the law of our country, if the deposit agreed in the contract of sale is not sufficient to make up for the loss caused by the breach of contract by one party, the people's court may award compensation if the other party requests compensation for the loss in excess of the deposit, but the total amount of the deposit and the loss compensation shall not exceed the loss caused by the breach of contract.
Now suppose the customer in the morning to return the order, and asked for a refund of the deposit, and our company has not formally contact with the factory to start production, we should refund the deposit?
In this case, you first need to determine why the customer canceled the order. Is it because of finding a supplier with a lower price, or other reasons. Only when the reasons are clear can we take targeted measures. Through negotiation, we can try to make customers no longer cancel orders, which is the best solution.
However, if the customer insists on canceling the order, according to the contract, if our company does not suffer any loss as a result, the deposit can be refunded. In this case, the temporary concession helps to establish a good corporate image, for future cooperation to lay the foundation.
If we feel that the customer will not cooperate with us again, according to the contract, we have the right not to refund the deposit because the customer is in breach of contract.
Assuming that the customer pays the deposit according to the 30% standard, after delivery, the quality of the goods in stock by the customer does not meet their requirements, and requires a return and refund of the deposit, what should we do?
Faced with this situation, I thinkIf the quality of the goods do have problems, we should refund the deposit in full. This is not only about the integrity of the image of the enterprise, but also about the image of the country. Of course, if the customer agrees, we can choose to repair or remake the goods, which is the best solution.
If after the goods are completed, customers often find fault and find errors, and finally request to cancel the order, what should we do?
This situation may be that the customer deliberately finds fault with us as a way to threaten us and try to buy the goods at a lower price. In this case, we need to distinguish carefully and stick to our position. Integrity does not mean unconditional acceptance of customer requirements. We can't easily agree to refund the deposit.
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