‘Non-refundable deposit’ is not a complete cancellation system. The parties still need to know what the payment funds, when commitment occurs, what evidence supports retained cost, and which law and contract control the result.
A buyer pays a deposit, then rejects the first colour sample and pauses the project. The supplier says custom profiles and glass have been ordered; the buyer says production never started. Both statements may be too coarse. Sample work, engineering, reserved capacity, non-cancellable material orders, reusable stock and completed units are different states. A defensible process defines those states before payment and preserves evidence of the actual state when cancellation occurs.
1. Define the payment by function, not by the label ‘deposit’
Record the amount, currency, due event and commercial purpose. Is it an advance against the price, funding for design or samples, security for a reserved production slot, reimbursement of identified third-party costs, or a combination? Labels have different legal effects across jurisdictions; only transaction-specific legal review can determine the character and enforceability of the arrangement.
Connect payment to a controlled scope: window marks, drawing revision, sample programme, finish route, nominated components and estimated production sequence. State which work may begin on receipt and which actions remain prohibited until separate approvals. Otherwise one party may treat the deposit as authority to buy custom material while the other sees it only as a place in the schedule.
Define cancellation, suspension, buyer delay and supplier default separately, including who may give notice, by what channel, when it takes effect and which work must stop. Do not assume the same payment consequence applies to a convenience cancellation, an unresolved sample, an excused delay and an alleged breach.
| Question | Controlled answer | Evidence owner |
|---|---|---|
| What is being paid? | Amount, currency, tax treatment and invoice reference | Commercial/finance owner |
| What does it authorise? | Named design, sample, reservation or procurement actions | Contract and project owner |
| What remains on hold? | Production, custom material, finish or shipment gates | Technical/release authority |
| What event changes treatment? | Notice, approval, purchase commitment or completion event | Authorised contract owner |
| Which law/forum applies? | Reviewed governing-law and dispute provisions | Authorised legal adviser |
2. Build a commitment ladder for drawings, samples, colour and material
Use stages that correspond to evidence, not vague percentages. Before technical work, exposure may be limited to documented administration. After measured drawings or engineering begin, identifiable services may exist. After a physical sample or finish panel is commissioned, third-party and fabrication costs may arise. After a non-cancellable material order, supplier exposure changes again. After fabrication, completed and recoverable value must be reconciled unit by unit.
Colour rejection is not automatically buyer cancellation. First compare the submitted sample with the controlled colour reference, substrate, finish system, gloss/texture, viewing method and approval criteria. Classify the outcome: conforming sample rejected as a preference change; non-conforming sample; ambiguous requirement; or supplier-proposed substitution. The responsible technical and contractual teams decide consequences.
Material ‘commitment’ should be evidenced by an authorised purchase order, supplier acknowledgement, cancellation terms, invoice/payment, batch identity, quantity allocation and whether the material can be reused, returned or redirected. A screenshot, internal reservation or unsupported assertion is not equivalent to an unavoidable third-party cost. Equally, absence of cutting or assembly does not prove no commitment exists.
| Stage/scenario | Evidence to preserve | Questions before any retention/refund decision |
|---|---|---|
| No technical release | Payment, scope and work log | Was any authorised service performed or capacity committed? |
| Drawings/engineering started | Timesheets/deliverables/revisions and agreed rates or allocation | Was work authorised, usable and contractually chargeable? |
| Sample or colour panel made | Sample brief, purchase/work order, physical ID and disposition | Did it match the approved reference and can it be reused? |
| Custom material ordered | Third-party order, acknowledgement, payment, cancellation and return terms | Is the cost unavoidable, recoverable or reallocable? |
| Fabrication started | Released marks, material issue and production records | Which units exist and what salvage/completion value remains? |
| Goods complete/packed | Inspection, inventory, packing and storage records | What delivery, storage, resale or title issues require advice? |
3. Freeze commitments at notice and reconcile actual exposure
When an authorised notice arrives, timestamp it, acknowledge receipt without conceding legal effect, and issue a controlled hold to the relevant project functions. Identify work already completed, work safely stoppable, third-party commitments that may still be cancelled and actions needed to protect goods or evidence. Do not continue discretionary production merely to increase a claim.
UNCITRAL's CISG, where applicable, addresses damages, mitigation and effects of avoidance in articles 74 to 77 and 81 to 84. Those provisions must be read with the Convention's scope, the contract, reservations and applicable law. They do not create a universal deposit-retention formula, and the operational team should not calculate legal entitlement from internal cost alone.
Create a reconciliation using actual, non-duplicated records: authorised services, third-party committed costs, completed work, reusable or returnable materials, credits/rebates, salvage or resale considerations, storage/protection, amounts already paid and taxes. Separate cost evidence from legal entitlement. Counsel and authorised commercial decision-makers determine which items are recoverable, refundable, set off or disputed.
| Line | Evidence | Control against overstatement |
|---|---|---|
| Completed services/work | Deliverable, mark, hours or production record | Exclude unauthorised or duplicated effort |
| External commitments | Supplier order, cancellation terms and actual charge | Deduct refunds, credits and avoidable amounts |
| Materials/WIP | Batch, quantity, allocation, condition and location | Identify reuse, return, redirection and residual value |
| Protection/storage | Authorised need, period and invoice | Do not project indefinite estimates as incurred cost |
| Payments/credits | Ledger and bank evidence | Reconcile currency, tax and prior offsets separately |
| Legal/commercial position | Signed agreement or authorised advice | Do not convert cost evidence into automatic entitlement |
FAQ
Are custom-made window deposits always non-refundable?
No universal rule can be stated. Contract wording, payment character, work and commitments, reason for cancellation, governing law and mandatory protections all matter.
Does ‘production not started’ mean the full deposit must be returned?
Not necessarily. Approved engineering, samples or non-cancellable materials may exist; conversely, an internal claim of commitment may be unsupported or avoidable. Reconcile evidence and obtain legal advice.
Can a supplier retain the full deposit after a colour sample is rejected?
The answer depends on the approved reference, whether the sample conformed, authorised scope, actual commitment and governing terms/law. Sample rejection alone is not a safe formula.
What proves that custom material was committed?
Use third-party orders, acknowledgement, payment, cancellation/return terms, batch and project allocation, plus evidence of credits, reuse or resale. Evidence of cost still does not by itself decide legal entitlement.
Should the factory stop everything immediately after cancellation notice?
The authorised team should control the hold, safe stopping, protection and mitigation. Some actions may be necessary to prevent damage; new discretionary commitments should not continue without authority.
Can a refund be sent to a different account requested by email?
Treat that as a changed beneficiary instruction: hold it, verify independently through the controlled contact route, and complete bank, legal and approval checks before payment.
Continue the project review
Connect this guide with the proposed window and door systems, then review how Cavorlen approaches manufacturing and quality control. When your schedule is ready, send it through the project review form.
Official sources used
UNCITRAL — CISG official text and status materials ↗UNCITRAL — Digest of Case Law on the CISG (2016 edition) ↗UNIDROIT — Principles of International Commercial Contracts 2016 ↗UNCITRAL — United Nations Guidelines for Consumer Protection ↗Related buyer guides
This article is general procurement, cancellation-record and evidence-control education, not legal, consumer-rights, banking, insolvency, tax, accounting or dispute advice. It does not decide whether a payment is a deposit, advance, earnest money, part payment, security or penalty; whether any sum is refundable, forfeitable or recoverable; whether cancellation, termination, suspension, breach, restitution, damages or mitigation rights exist; or whether a clause is valid or fair. Mandatory consumer, unfair-terms, construction, sales and insolvency laws may override contract wording and differ by jurisdiction. It states no Cavorlen deposit, refund, cancellation, sample, stock or production policy. Use transaction-specific advice from authorised local counsel and finance/accounting professionals before contracting, cancelling, retaining or refunding money.