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Chargebacks / Paypal Dispute - Fraudulent Deadbeat Customers & unpaid merchandise

We sell custom parts for cars and some made to order parts.

Occasionally I encounter deadbeat buyers who will order made-to-order parts that take time to produce.  Everything is clearly stated multiple times, no cancellations and ETA's are clearly posted and the customer must agree to the same thing multiple times during checkout.

Even though it is blatantly obvious that the part does not ship immediately I still get customers that cancel the order through Paypal, either because they just didn't read or they have money problems and think they can just cancel the order.  Many times the customer ends up getting their money back and were stuck with custom made to order parts / dead inventory that may or may not ever sell and that we must warehouse.

An order form to pay on the website is legally binding is it not? Can we legally pursue debt collection at this point? If so how do we go about this?

I'm sure wedding cake companies and other businesses must have some kind of contract for made to order items.

Currently I have a customer with a large order that I would like to collect on seeing how the case with Paypal unfolds.

If I can legally pursue collection since the customer's payment is refunded, what legalese should I put on the website in order to make this contract bulletproof?
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RonPaul
Asked:
RonPaul
1 Solution
 
PaulHendCommented:
In the business legal environment, a verbal contract between a buyer and seller is binding. You can sue for damages.  Now, I would not make a product without at least some money down covering costs of the build minus the profit.

Bottom line: you can seek damages for fraudulent contract agreement. I would contact PayPal and see what they say and also talk to a lawyer that doesn't charge for consultations.  It could be small enough to take to small claims court.

-PaulHend
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