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because its advance payments and cancellation charges if the customer cancels and its not your fault fair terms can protect your business from losing out financially your customer may have a legal right to cancel during a cooling-off period and get all or some of their money back even outside of this any amount you keep if the customer counsels should take into account what your business is actually losing it must not be excessive deposits are a customers way of reserving your goods or services advance payments may help you pay your businesss actual costs during a contract a terma says all advance payments are non-refundable regardless of the circumstances is likely to be unfair even when your customer is at fault if you can for example we sell and get some money back and its like your customer is entitled to get some money back two terms are more likely to be fair if they set deposits as a small percentage of the total price and any advance payments reflect your actual expenses l