Advice on artist & Client TOS
Sep. 23rd, 2014 02:40 pmHello Artist_Beware! My question is relativity simple.
If an artist agrees to a deadline, and the artist misses the agreed on deadline, is the client allowed to ask for a full refund, regardless of the the artist TOS (ex: no refunds, only partial payment if I've started, ect)?
I thought this might have been a breech in contract between the artist and the client, and the client would then have a choice to end the contact or to renegotiate the contract.
Is this true?
I've been trying to contact the better business bureau about this, but they seem to continue to run me around in circles. A this point they are telling me to call somewhere else atm, but I'll keep everyone updated on what I am told from their end.
If an artist agrees to a deadline, and the artist misses the agreed on deadline, is the client allowed to ask for a full refund, regardless of the the artist TOS (ex: no refunds, only partial payment if I've started, ect)?
I thought this might have been a breech in contract between the artist and the client, and the client would then have a choice to end the contact or to renegotiate the contract.
Is this true?
I've been trying to contact the better business bureau about this, but they seem to continue to run me around in circles. A this point they are telling me to call somewhere else atm, but I'll keep everyone updated on what I am told from their end.
no subject
Date: 2014-09-23 08:11 pm (UTC)If it wasn't a severe emergency or something of the like, it would be good business for the artist to honor the full refund. Keep in mind that if you do get a full refund, that any progress on the work will not be yours. The artist may resell the base pose as they wish to recoup the cost.
With that said, if it were me personally and they were almost done, I'd just extend it slightly. If the image had not even started? Yeah probably would ask for a full refund, myself.
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Date: 2014-09-25 07:23 pm (UTC)And yes, if you get a refund the work is no longer your's. Here is an interesting question. If a client were to get a full refund, and let's say the artist completed the image to sell prints of, or use, ect.
How would you handle that/feel about it?
I have never heard of this ever happening. I know artist have re-purposed things before (which is perfectly fine) -- but what if the artist completes the work? I wonder if there is some legal issues with that? I am completely unsure on that one. Maybe you can enlightening me? A little off topic, sorry!
Yeah I agree if no WIPs have been sent, or anything I think a refund is in store.
I always get this awkward feeling when I ask for a refund and an artist magically shows me a WIP at that stage. It gives me a feeling that they made the WIP to show me because I had ask for a refund.
What do you think about things like that? I normally just let the artist continue but! yeah!
Lots of hypothetical questions sorry! xD
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Date: 2014-09-25 07:29 pm (UTC)no subject
Date: 2014-09-25 07:47 pm (UTC)I also assume because the artist completes it on their own time, that the client has no rights to the distribution rights either.
Morals are deff a different issues all together that gets complicated xD;
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Date: 2014-09-23 08:17 pm (UTC)you could always ask, but especially if the TOS says 'no refunds' i wouldn't be too hopeful.
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Date: 2014-09-23 08:35 pm (UTC)This "no refunds" jazz from artists is disgusting and making the rest of us look bad. It also gives the commissioner the feeling that they have no rights, which is simply just not true.
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Date: 2014-09-23 10:59 pm (UTC)personally i just see 'no refunds' in a TOS as a red flag to avoid the artist anyway.
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Date: 2014-09-23 11:36 pm (UTC)no subject
Date: 2014-09-23 11:45 pm (UTC)no subject
Date: 2014-09-24 12:39 am (UTC)i'm just saying that if the artist states 'no refunds' the client is in it for the long haul. if that is argueing with paypal after the refund period has passed (i've heard the stories, they tend to not go well) or if it means taking the artist to small claims court (potentially difficult with different countries/states/etc) the commissioner is going to be in for a headache.
the safest thing to do is to just avoid anyone who states 'no refunds' in their TOS.
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Date: 2014-09-24 01:30 pm (UTC)touch poo, get stinky. *shrug*
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Date: 2014-09-23 08:34 pm (UTC)First, a No Refunds clause is unenforceable in a court of law if no product has been provided.
Secondly, you can request a refund. If work has started they should refund you a portion equivalent to what has not been completed (IE the difference between colors and inks if they've finished the inks, etc.), or the entirety if they have done no work.
no subject
Date: 2014-09-23 08:49 pm (UTC)no subject
Date: 2014-09-23 09:13 pm (UTC)I explained below, but, in the case of a custom item, when you choose to accept a deadline you take a greater risk as a seller. The buyer can ask for a full refund in this case.
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Date: 2014-09-25 07:31 pm (UTC)The artist tells me they will have it done by a new date, but things come and go and we continue with this same thing.
You know?
It is frustrating since when I commissions an artist I don't want a half finished image (partial refund), but I also don't want to be kept in limbo forever. I'd just prefer my full refund and no image but, yeah you also want to comp the artist for their work... but they overall refuse to finish... so tough right?
How do you feel about that? That puts the client in an awkward place, and the artist who has done some of the work as well. Refunds are always a delicate thing I feel.
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Date: 2014-09-23 09:09 pm (UTC)So as you had an agreed deadline you could ask for a partial refund (suggested 20-25%). However unless the art is rendered unusable due to the delay, you are unlikely to get a full refund if work has been done. If you have agreed to a 'no-refund' contract then that makes it more tricky, esp if it's a casual contract.
I think the best would be to ask for a partial discount for the missed deadline if you still want the art.
If the art is no longer relevant due to the missed deadline then you can ask to cancel and get a refund on work not done.
If no work has been done yet combined with the missed deadline, then yes, you could cancel and ask for a full refund.
(Sorry if that was a bit long winded and dry!)
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Date: 2014-09-23 09:27 pm (UTC)You're absolutely right on this, but with missed deadlines it's one case where the contract actually favours the buyer if nothing specific is set to overrule it.
So unless they did set a specific 'deadline missed' clause with a different course of action(like an initial 25% off for the missed and 5% for every week missed kinda deal) the buyer still retains the option to dissolve the contract for a breach.
I think if a seller offers deadlines they really do need to draw up a contract with a clause like you mention- that sets what the penalty for missing the deadline is. That way they can mitigate the risk of being on the hook for the whole amount + plus any labour.
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Date: 2014-09-25 09:16 pm (UTC)I totally agree, all good TOS agreements should cover what happens in case of the artist not being able to do the work or artist/client cancellation and refund amounts. Even if you don't think the situation will ever arise, it's good to have that in place just in case!
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Date: 2014-09-25 07:37 pm (UTC)But is it really alright if the artist misses the deadline and the client wants a refund -- to charge them a cancellation fee? I mean legally, I thought it might be a breech so it be alright for the client to say, "I want to dissolve the contract, because you (the artist) breached the contract"
Is that really a cancellation? I am seriously just wondering about the legal part of that.
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Date: 2014-09-25 08:40 pm (UTC)In this case, the art could be argued that it is "unusable" if it was time sensitive so you could reasonably ask for a 50-75% refund as a last resort if the art has been done. I wanted to mention about rejection fees in case you have to negotiate a partial refund and wanted to know how much to aim for but I think I ended up confusing the matter! Sorry about that ^^
But yes, you're right with your point! The one who breaks the contract is deemed 'in the wrong'. If you have not done anything to cause a delay and they did not negotiate an extension on the deadline; then they have broken the contract by missing the agreed deadline so you do have a case for not paying (getting full refund). I've double checked in my business practise guide and it also suggests that if the artist does not deliver by contractually agreed date, does not seek an extension and the delay is not caused by the client, then the client can cancel and not pay.
However my concern is that the artist is clearly not professional (as others have stated, a 'no refund' policy is very dodgy) and I assume it was a causal contract that didn't include things like cancellation/rejection fees etc so you may have a fight on your hands with getting a full refund. I hope it's not the case and you can work it out with the artist without too much stress though!
On a side note, the professional world runs on deadlines, that's why missed deadlines are considered a serious matter and an essential part of the contract (part of the premium price paid for professional art is that the client is paying for it to be delivered on time). However causal artists charging 'hobby prices' can have a much more relaxed view on deadlines so may not realise their importance or lack the ability to work to them. Have you been given any reason for the delay in the art's delivery?
(sorry, long post is long)
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Date: 2014-09-23 09:11 pm (UTC)That's the thing about deadlines, when an artist chooses to accept one they take on a lot more risk than a usual transaction. It's one of the reasons why some artists charge more for deadlined pieces, which I think is fair. The artist takes a risk of missing the deadline and therefore taking a loss for all their work up until the deadline.
The guidelines for what gives you a just reason to miss a deadline are pretty ruthless as well. A lot of the reasons furries use to justify delays and which their customers accept actually wouldn't hold up legally. (I can get into more detail, don't think it's needed here though)
You can choose to renegotiate the deal at this point if you still want the piece, with what ever you feel is a fair amount of a partial refund, but you're under no obligation to do so.
Also BBB probably can't help you if the person selling is not registered as business/sole proprietor. You're better off talking to your state/provincial prosecutor(DA)'s office.
Normally they wont get involved unless it multiple induviduals and high loss amount, but it's worth a try,.
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Date: 2014-09-23 09:31 pm (UTC)no subject
Date: 2014-09-23 10:29 pm (UTC)Like this comment by epiceternity
http://artists-beware.livejournal.com/795271.html?thread=29813895#t29813895
explains that you can, as a seller, write in your contract a clause to set guidelines on what happens with a missed deadline that overrides the ability of the buyer to dissolve on a missed deadline. This has to be specified in the contract in detail and initialed by buyer and seller in addition into the over all signature. (if you aren't doing scan/sign method, which you should be, then make sure in your correspondence you get your buyer to explicitly acknowledge the clause about what happens on a missed deadline).
And be prepared that some buyers wont want to give away their right to dissolve due to breach on missed deadline by agreeing to that clause, and you may loose a customer.
However with that clause in there it keeps you from taking a total loss if something comes up and you can't keep your deadline.
no subject
Date: 2014-09-24 01:37 pm (UTC)no subject
Date: 2014-09-25 07:09 am (UTC)Remember the breach is all about fault, partial refunds are cases where there's fault on both sides, full refund means one party is completely at fault.
So if the customer causes the missed deadline then there is no breach on the seller's side because they aren't at fault. However because the contract is broken(unless you specifically set up something in the contract of how to deal with any individual clause is broken, which is something many very complicated deals do set up) the deal needs to be re-negotiated. Since the original contract is broken because of the deadline clause not being met if you go forward without renegotiating you are proceeding without proper legal protection and no clear guidelines for the things progressing.
The other option if the deadline is missed without fault on the part of the seller is if no one wants to renegotiate is to dissolve with both parties made whole again.
If the buyer never contacts you again you refund minus you actual loss.
Deposits are legally protected, but not if you breached. If the seller breaches by missing the deadline the client is entitled to their deposit along with the rest of the funds they paid(we're talking about custom work here)because the fault is on the seller. A deposit isn't free money for a seller just because they accept a deal, the way many furries seem to think, it's there to protect the seller if the client cancels, or otherwise is responsible for the dissolving of the contracy.
If a client wants to cancel the contract 'just because they changed their mind', contract law hates that. So if there is any loss to be had(already invested time, resources, and/or money) then the one who changed their mind is the one who eats the loss.
So if you take a deposit as the seller, then decided you just plain didn't want to do the commission for no legally acceptable reason then you do have to return that deposit as well as whatever else you are obligated to return.
The basics of contract law are if you breach, you make the other party whole and cover any relating loss. And that you never go into any contract unless you fully intend to fulfill it; so if you 'just change your mind', or decide you don't want to do it, then you better be prepared to eat some loss.
Generally the sort of reasons that you have allowance for missed deadlines are cases where you physically cannot work- ie: head injury that leaves you in a coma for several months, you break both your arms, etc.
The death of a loved on only gives you minimal cushion, and they have to be immediate family, grandparents may or may not count. For example you get three days in my country for the loss of child; which, thankfully, most people are not so heartless to enforce!
Emotional issues are trickier. Again, these aren't my personal beliefs so before anyone comes after me thinking I'm heartless or whatever, I'm just going by contract law.
You have to prove you were absolutely incapable of completing the work, so if you were able to go to school, or out to movies with a friend, or dinner with your spouse at the same time you claimed to be too depressed or anxious to complete the commission that would almost assuredly not be accepted and you would still be in breach.
If you have a missed deadline because of emotional illness you really need to contact a lawyer to help you present the case in the best possible way.
This is changing as society as a whole is more educated and less dismissive of anxiety and depression as genuine illnesses.
(continued in reply)
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Date: 2014-09-25 07:09 am (UTC)Another thing it's important for sellers to know is if you have a break in at your house and everything including your clippers and fur is stolen you are expected to eat some loss and repurchase materials and restart the project. This is because it's assumed you'll have insurance to reclaim some of that extra loss- because the law always expects people to actively mitigate their chance for loss; and also because your workspace is supposed to be secure.
You would not be able to charge the client twice for materials.
This comes up in cases with building projects often, for example someone is hired to do a custom bookcase design for a homeowner and they give a hard deadline. Half way through their truck is robbed of all their woodworking tools and they cannot complete the job on time. The client doesn't want to renegotiate a new date since they needed the bookcase for a magazine shoot at the house but the builder wont refund the client, so the client sues. That's a case the person robbed will loose.
This is part of the reason you really should leave yourself a generous work cushion, or if you feel you can't secure your workshop well enough don't take work with hard deadlines!
Everyone should double check the rules in their area for "Acts of God". Sometimes you get a set lee-way for something being destroyed in a fire or a tornado, and sometimes you don't. What qualifies
And the final thing to remember in don't be afraid to ask to renegotiate for a missed deadline. It could be the object is no use to the client with the deadline gone, but it could also be a little less useful but still worth something to them. Try and offer a fair compensation, but don't pressure/coerce the client into accepting the new deal. They have no obligation to do so.
And remember if client accepts a new deadline without asking for compensation they can't ask for compensation at the end of things. So they can't say "it's okay, next week will be fine! :)" and then at the end of things ask for money back for the missed deadline. (though it'd be good business ethics/good customer service to refund them a little for your stuff up)
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Date: 2014-09-25 07:45 pm (UTC)This would be really interesting to talk to you further about!
Also yeah the BBB has been majorly unhelpful, as I just wanted to ask them this legal question. I believe they gave me the number to my attorney general office here where I live.
Also here is one more legal question:
When you commission someone, who's laws apply?
>The state/country the client is in
>The state/country the artist is in
I HEARD somewhere it depends on the currency you are using (IE: if you use USD --- it applies to US laws, or CAD it applies to Canadian laws)
Is that true? I really wonder! I'm at a loss!
no subject
Date: 2014-09-23 09:42 pm (UTC)Should they get it? Depends, if the art served a very specific purpose and HAD to be available by a certain time, like as a wedding gift or something? I'd be inclined to agree they should get a refund, maybe even a full refund provided they make no claims to any work (sketches) finished up to that point.
Provided the customer gave a reasonable amount of time before the deadline, even if the artist agreed to the time given. If a customer expects a huge detailed multi-character piece in traditional media in like a week... That's an unrealistic expectation.
But that's opinions, and not American business legalities.
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Date: 2014-09-23 10:35 pm (UTC)The artist has to look out for themself though, every party in a business deal is responsible for mitigating their own loss. So you need as an artist to consider how much time you need, and to give yourself 'life getting in the way' cushion in addition.
One party can't just enforce a deadline, it has to be agreed on by both parties at the very beginning of the deal. So if the commissioner says one week and you say no way, that's that. You either have a meeting of the minds on the deadline or don't make a deal.
If you do decide to take that multi character, real media piece with only a week to draw it; and it turns out can't it done you have to face that you made a mistake and eat the loss.
no subject
Date: 2014-09-24 11:15 am (UTC)I'm just saying I'd need to know all the details before I could judge whether or not the customer should get a full refund or not. Opinion-wise, not legalities wise. But as you mentioned, if the artist is not a registered professional your legal recourse is limited in this aspect.
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Date: 2014-09-24 01:58 pm (UTC)If you agree to complete even the simplest piece in one week and set a deadline for a specific date, and then the commissioner waits until the day before to get back to you with a reference then you're going to break that deadline no matter how hard you try. D+7 deadlines are easier to meet than DD/MM deadlines just in case your client goes off-radar at an important point.
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Date: 2014-09-24 05:57 pm (UTC)Don't I know it :/
Working on a piece right now with a deadline coming up, customer sent me new reference yesterday when I send them what I thought was the final sketch. It's not malicious or intentional or anything, but ugh, the stress. Combine it with the flu, which is also an unforeseen circumstance and I don't blame artists who refuse to abide by deadlines (and thus don't agree on them).
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Date: 2014-09-24 06:57 pm (UTC)Standard turnaround times based on the date of client approval is also how my day job schedules work for code changes. We can give an expected completion date based on the work queue and the standard turnaround time, but only after we receive the signed quote - and we set that date, never the client.
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Date: 2014-09-24 04:24 am (UTC)no subject
Date: 2014-09-25 07:49 pm (UTC)I believe they gave me the number to the attorney general office around here and told me to ask them instead. I got a little frustrated and posted here instead to see what everyone thoguht instead.
That is really interesting to know about the BBB tho, I had no idea! I'll be more careful when I look into their rating system.
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Date: 2014-09-25 08:58 pm (UTC)When I was just an employee at my current business (and not the owner as I am now) there were a couple of disgruntled customers who threatened to report us to the BBB as if it was something that would make us instantly cater to their demands.
The BB can't really do anything. They will attempt to mediate, but can't force outcomes and if they publish about you on their site, you can get them to take it down.
One person went through with their threat on us and all that happened, was they wrote in a complaint and the BBB sent us a letter asking for our side of the story. When we said that we offered a very good solution that would have solved his problem and he rejected it... they dropped it.
But I digress. I am in agreement that they don't want to take freelancers on and would rather just deal with "regular" businesses.
no subject
Date: 2014-09-24 07:59 am (UTC)Back on subject, Yes you can ask for a full refund but depending on what you ordered and what you wanted it for this may not be the best choice. If it was for an important business project and you have seen no work then yes you should ask for a full refund. (this is the situation i believe you are in)
However if it is not for a business purpose or doesn't actually have a due date out side of when the artist agreed to it(but from reading what you have written it seems like it does) and you have seen work, you should contact the artist and see if you could get a partial back. This is just what i would do but you could still get a full refund anyway.
Of course however after you have been refunded the money any artwork that was done by them in this time no longer belongs to you and if you foresee using this artist for future ventures i would defiantly try being polite when asking for your full refund, they might very well give it to you, it is always a nice thing to do before going to paypal as the artist might need some times to get the funds for you. However if they become rude after this i would suggest not using them again.
no subject
Date: 2014-09-25 07:52 pm (UTC)I mentioned this in an above post, but how do you feel if after a client asks for a refund then the artist shows signs of working on the art AFTER the refund was asked for? Like nothing was shown to the client prior to that point? Would you still ask for a full refund at that point?
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Date: 2014-10-03 07:30 am (UTC)no subject
Date: 2014-09-24 05:03 pm (UTC)In my opinion, at least.
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Date: 2014-09-25 07:53 pm (UTC)Like the client asks for a refund and the artist says well I have colors done (link), so I can only offer you a partial refund.
This is all of course after the deadline has been missed.
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Date: 2014-09-25 11:09 pm (UTC)I mean, if the artist did the work, I think it's unreasonable to expect a full refund. I mean, if they finished the work the evening prior are they supposed to just sit on their hands and not receive any compensation?
I think it also depends on why the deadline was in place... is it a deadline so that the client has an idea of when to expect their work? Is it a deadline because the artwork is needed for a project and has to be included in time (a book, calendar, etc), or is to be used at an event or for an event? I mean, a missed deadline can either be a minor inconvenience or a major issue that causes loss of business.
no subject
Date: 2014-09-26 12:18 am (UTC)Imo if a commissioner asks for a refund before they are made aware that a particular stage has been started/completed/however the ToS deals with that then it's only good service to go ahead and refund. Sure, you could mention that you actually just finished x, does that change your mind? and see where it gets you. But I can totally see why a customer would be wary.
no subject
Date: 2014-09-26 12:22 am (UTC)no subject
Date: 2014-09-25 09:01 pm (UTC)It has the same attitude of when, as kids, my sister would say "Well I WAAAAS going to *nice thing* for you, but now I am not gonna!" not exactly the same, but the feeling is to me.