Breaking a lay-by agreement |
Michelle put a $110 outfit on lay-by. When she entered into the lay-by agreement, Michelle signed a written agreement, that set out the lay-by conditions.
Michelle paid the deposit and, over the next few weeks, made four more small payments. About four weeks after entering into the agreement, the business contacted her to say that the lay-by was due for settlement in one week. Michelle made a mental note to finalise her purchase.
Two weeks later, Michelle remembered the lay-by and went to collect it. When she arrived at the shop, they told her they´d placed the item back in stock and sold it.
The manager was apologetic, but explained that when the business didn´t hear from Michelle, they assumed that she didn´t intend to finalise payment or collect the outfit.
Can Michelle get a refund for the amount she has already paid?
Michelle would be entitled to a partial refund. Because Michelle broke the lay-by agreement by failing to pay the last instalment, the business is entitled to cover its reasonable costs, but must return the balance to Michelle.
Read more about lay-bys.
Last reviewed 30/11/2011 |
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