Consumer Information Pack

Deposits

You may see something in a shop, which you'd like to reserve until you've got enough money to pay for it. So you put down a deposit. Or you order something not in stock (or to be made especially for you) and agree to pay part of the price in advance to show you intend to buy it. Similarly, you may be asked for a deposit towards the materials and labour costs of a service to be done later, for example, re-roofing your house.

In all these cases you are making a binding contract with the trader, so that if later you change your mind about wanting the goods or service the trader could be entitled to keep your deposit. He could even sue you for up to the full amount of the goods or work, and, as in the case of a builder, for loss of profit on other work turned away.