Must an advance payment be returned if the work was not done?

The court ordered the contractor to return the advance payment made by the client for work that had not been performed. In case no. 2-22-105912, Viru County Court upheld AS Multi Marger’s claim and ordered the defendant to pay the principal debt of €2,000 together with default interest.

NAMM attorney-at-law Nele Tammemäe represented AS Multi Marger, which had paid an advance for the construction of a water and sewerage pipeline. The agreed works were not performed and the advance payment was not returned.

The court explained that if the work for which an advance payment was made is not performed, the advance payment must be returned. The contractor claimed that he had already returned the money in cash but was unable to prove it. Because the burden of proof lay with him, the court upheld the client’s claim in full and also awarded procedural costs.

The judgment is important for every client and contractor: an advance payment does not remain with the contractor if the agreed work is not done, and the return of money must be provable. The judgment is available here.