Mike Lenhart (bio)

Seems to me that a contract is created for just these conditions. I'd politely require the client to honor it and then move on to more promising prospects.

That's happened to me once too. Unfortunately like most things, it depends on the situation. If I were to come across that situation again (knock on wood I don't), I'd place a call to the client and get to the bottom of it. You may think you understood the client but it's possible that either 1) you didn't or 2) he/she didn't effectively communicate what they truly wanted. Sometimes you just need to ask what it is they want exactly. Show that you're willing to make things work. If you can reach an understanding and move forward, that's great. If they're stubborn and really want out, then part ways. If you have clauses about deposits not being refundable and/or a kill fee, it's best to stick to your guns (politely of course). After all, they signed a contract with you, binding them (and you) to the terms. Sometimes though, it may just be easier to let it go. Again it depends on the situation.

Oh and don't ever reply immediately after you hear the rejection. Emotions are too high. Give it at least a few hours and really take the time to look over everything before you respond.

I write and design and when I quote a script I break the fee down into parts --
Concept/treatment; first draft, second draft, final.

So, after we get this far we are one third of the way done. You owe me the deposit and one third of the money for the job, etc.

If she bailed right after the comps, not much you can say, but yes, you get to keep her deposit.

Reminds me of a buying/selling tactic of "Never accept the first offer". Something like this sounds like just such a thing a client would do to "gain control" of the contract and their designer.

I would go with the polite reminder that the contract is clearly signed by the client and the terms are clear. If that is not enough and they demand a contract break go quickly to the lawyer punch. It is one thing not wanting to sour the relationship, but at that point what is left to sour?

No matter what your solution is remember that customers will talk to other acquaintances and relay good or bad things about you. Word of mouth is powerful advertising and it isn't always positive. Make sure you end on a positive note making them feel like "they won" and you were very professional. Some customers just aren't worth the stress, move forward to better experiences.

"She finally says that things just aren't going to work out and that she'd just like her deposit back."

"You want to end this on good terms and really don't want to screw the client over too much."

Really she is screwing herself over, a contract is a contract. It is in her best interest to follow through with the contract. I would apologize for the heated conversation, and in a professional matter explain that it is in both our best interests to put feelings aside and focus on the project at hand.

Sounds like your client is playing a variation on the "can you guess what I'm thinking" game. Her version must be if you don't guess, you don't get paid.

I always sit down with clients and ask them if they have anything in mind; not because I intend to use it, but hearing it will give me insight into their line of thinking, which they may not be able to put into words adequately. Then I take their line of thinking and apply some sophistication and skill to it. Then I add one concept beyond on either end of the spectrum to force the client to hone their decision and find their happy medium.

And as others have said, your contract solidified the terms of the agreement before you invested your time. I would casually remind your client that you are selling your time as well as your talent; and you'll be happy to refund her cash when she refunds your time. Now THAT I would like to see.