Retail refund/ Reimbursement for the original down payment

[Ronin055]

Hello, Im new here but I hope someone can help me.

I own a small shop in Reno Nevada.

I had a customer come in over a year ago and request an item from my display. The individual then wanted a specific number of modifications done to the item. They left promising to return at the end of the week and pay for the item, and the modifications.

Over a week later the individual returns and pays for half of the total.

Over a span of 6 months I was unable to get the person to come in a pay for the remainder of the item.

I placed the item with modifications back on sale, and sold the item roughly 10months after the initial agreement.

Now, over a year after the original contact with the person, they call. I told them that I sold it. So they now are requesting to be reinbursed for the original down payment.

I wouldnt worry, but they are acting like I have done something wrong and was out to "get" them from the start.

My question is this, by law, am I required to refund the whole down payment? A partial refund or have they forfited the original down payment by not making contact during this time?

Additionally, does this law pertain to my situation at least in part?

NRS 97.225 Prepayment of unpaid total of payments; refund. 1. Notwithstanding the provisions of any retail installment contract to the contrary, if the rights of the buyer have not been terminated or forfeited under the terms of the contract, the buyer may prepay in full the unpaid total of payments thereof at any time before its final due date and, if the buyer does so, and if the contract is not in default under any term or condition of the contract more than 2 months, the buyer is entitled to a refund of the unearned portion of the finance charge for the prepayment. The amount of the refund must be computed by applying the agreed rate of the finance charge to the unpaid total of payments. Any greater amount of the finance charge which may have been precomputed and included in the balance due must be refunded. 2. This section does not preclude the imposition of any penalty for prepayment to which the parties may agree when the contract is executed. (Added to NRS by 1965, 661; A 1983, 975; 1985, 1259; 1993, 2757; 1995, 1803)

Thank you for your help in this matter.

[msg]

You can agree however you like but if they fail to pay, you do have a right to take/keep a reasonable deposit and to be paid for your work modifying.

It might be good to make clear your terms in future transactions.

[Ronin055]

Well it was all written down, and the payment arrangements were set by oral contract in good faith.

However after a year, how much of the $140 deposit should I refund? All, half, or none?

Or does someone have a different opinion.

And what is the customer actually entitled to?

I wouldnt nit pic about it at all, but the customer was being really unreasonable and started accusing me of not acting appropriate. So Im researching my legal obligations then I will weigh that against my moral feelings and then act accordingly.

First I want to know what the Law indicates I should do.

[Ronin055]

Well I guess no one has an answer.