NEED HELP WITH DEPOSIT REFUND IN A ROOM FOR RENT

A FRIEND AND I PLANNED TO MOVE IN TO THIS ROOM FOR RENT (IN BATANGAS STREET, MAKATI) WHICH COSTS 5K/MONTH. WE NEED TO PAY 1 MONTH DEPOSIT AND 1 MONTH ADVANCE (TOTAL OF 10K). WE MADE OUR INITIAL PAYMENT WHICH IS 5K ON MAY 21, 2011 AND WE TOLD ABBY (THE ONE IN-CHARGE FOR RENTALS) THAT WE'LL PAY THE OTHER HALF ONCE WE MOVE IN ON MAY 27 OR 28. HOWEVER, WE CHANGED OUR MINDS. SO I CALLED ABBY ON THE 28TH AND INFORMED HER THAT WE'LL JUST GET OUR MONEY BACK. SHE SAID THAT WE CAN GET IT ON MONDAY(MAY 30). SO I CALLED AGAIN ON THE 30TH BUT SHE SAID THAT SHE ALREADY DEPOSITED THE MONEY TO HER BOSS' ACCOUNT WHO IS OUT OF THE COUNTRY AND WILL BE BACK BY THE 1ST WEEK OF JUNE. THEN SHE REFERRED US TO THEIR AUDITOR. AND TO CUT IT SHORT, UP UNTIL NOW WE STILL DON'T HAVE THE MONEY KNOWING THAT THE OWNER IS ALREADY BACK IN TOWN AND CAN SIGN THE CHECK. THE AUDITOR SAID THAT THEY'LL TAKE 10% FOR THE PENALTY BUT THERE WAS NO CONTRACT/AGREEMENT SIGNED OR VERBAL. WE WE'RE NOT INFORMED OF THIS PENALTY BY ABBY. AND I DON'T AGREE THAT THEY HAVE TO CHARGE US THAT WITHOUT TELLING US BEFOREHAND. WE NEED THE MONEY TO PAY FOR OUR BILLS AND I DON'T THINK THEY WILL GIVE US THE REFUND COZ IF THEY WOULD, THEY WOULD HAVE ISSUED US THE CHECK ONCE THE OWNER IS BACK. IT'S ALMOST A MONTH PASSED. PLEASE HELP! =(

i would argue that there was an oral contract to lease. for your deposit, they agreed to reserve the unit for you. you breached the agreement by canceling. 10% penalty sounds fine to me.

give a demand letter.