On my contract there is no time line. It just simply states that if a child doesn't adjust then the provider retains the full deposit. They knew this so I gave them other options because I felt bad doing just terminating. I asked them what they wanted to do and they said "you now have said twice it is "best" if sally does not return, we will go along with your recommendation and we will consider the contract terminated by you". Prior to this I gave an alternative and they didn't want it my offer which is why they then proceeded to tell me "you now have...." . So it's not like I just terminated on the spot and kept their money.

If we get all technical here then they technically terminated their own contract without giving me a proper 4 week notice therefor allowing me to keep the deposit.

It's not about the money I don't care about that, if this is legally wrong I will give it back I am not stressing myself out over 400 bucks. I think this is happening because they had a friend who was suppose to come to for care as well. I terminated that contract before they started because they failed to show me proof of vaccinations for their children and in my daycare I do not allow children who are not vaccinated. Even though they technically broke my rules I gave them their money back and sent them on there way with the hopes that they will be more truthful with their next provider (they are that family who doesn't believe in vaccination and I found this out later on). So I think they told the other family they got they money back and now they are trying to do the same.