What are my rights if a contractor quit after taking my deposit?

Strengthen your case with clear steps:

• Review the contract. Look at the scope of work, deadlines, payment schedule, and default or termination terms.
• Gather proof. Keep copies of the contract, payment receipts, photos of unfinished work, and all messages or emails with the contractor.
• Send a demand letter. Explain how they breached the contract, request a refund by a set deadline, and send it by certified mail for proof.
• Consider legal options. For smaller amounts, small claims court can be quick and affordable. Larger claims may need a civil lawsuit.
• Check consumer protection laws. If the contractor took money without any intent to perform, that could also be considered an unfair or deceptive trade practice under some state laws. These laws may allow you to recover additional damages or penalties.

Thorough documentation shows the breach and helps you recover your money.

What to consider in your specific situation

While breach of contract claims are common in these cases, your options may vary based on:

• How much you’re owed vs. small claims limits.
• Any mediation/arbitration requirements.
• Contract timelines and default provisions.
• Quality of your documentation.
• Costs and business impact of the delay.

For more information about your options, use Rocket Copilot or request a Legal Pro review of your contract and demand letter.