A popular venue was booked for a wedding reception. The reception was cancelled (within 30 days of the event) by the customer due to unforseen circumstances. The venue charged a cancellation fee of 60% (because the cancellation was within 45 days of the event - cancellation clause was in the booking contract), plus forfieture of 100% of the booking deposit. Since there was no food or services ordered for the event (nothing but the room deposit was done), and the venue can be easily re-booked, are there really damages?
2006-06-09 02:46:09 · 7 answers · asked by George F 1 in Food & Drink ➔ Entertaining
If you said a contract saying that they could charge you the fees if you cancelled within 45 days, then you have to pay the fees. It is not for "damages". It is because you signed an agreement to pay them that. (And their damages are that they lose the profit they would have made from your party). Sorry, but it is legal.
2006-06-09 02:52:29 · answer #1 · answered by dewcoons 7 · 1⤊ 0⤋
Are there ACTUAL damages? If they were able to rebook, probably only some minimal administrative costs, and maybe the difference between the projected contract revenues.
Are there LEGALLY ENFORCEABLE damages? That's a completely different question. If you signed a contract that allowed a damage assessment of this nature, possibly YES. In some states there are limits on the enforcement of contractual liquidated damages provisions that could give you some relief from the contract you signed. There is also something called "unconscionability" that can prevent one party from enforcing a contract that is grossly unfair. However, these defenses depend on your jurisdiction and the full set of circumstances. If you are talking about an amount over $5,000, see a lawyer. If you are talking about a smaller amount, go to the local city/county law library and do some homework on enforcement of liquidated damage contract clauses in your state, and try to defend yourself in a small claims court.
But you cannot afford to just ignore this. If the venue thinks they have a valid claim, they could turn this over to a collection agency and harm your credit rating if you don't pay. Moral of the story: DON'T SIGN CONTRACTS unless you have read them thoroughly and understand the downside risk.
2006-06-09 13:35:50 · answer #2 · answered by Fogjazz49-Retired 6 · 0⤊ 0⤋
It's not always easy to book a room within 30 days. Most big parties have been in the planning stages for months, so the catering hall is not being unreasonable. They still have to pay all the people who were booked to work whether they work or not.
They lost a lot more that you did by not having your party.
If they do by some chance re-book your date, then you may be able to get some $$$ back. Have a friend call and ask if they have availability for that date. Then you'll know if they booked it or not. Good Luck. I personally got a Rock Bottom price for my wedding because someone cancelled.
2006-06-09 09:55:58 · answer #3 · answered by peglet 1 · 0⤊ 0⤋
It actually doesn't matter if there are damages are not. It was in the contract, and so it is so. Whether or not there were damages is not at all an issue.
2006-06-09 16:06:49 · answer #4 · answered by quepie 6 · 0⤊ 0⤋
Its a legal binding contract. If you re-book another place another time, make sure you negotiate this point!
2006-06-09 11:52:26 · answer #5 · answered by mercy 3 · 0⤊ 0⤋
yeah as a deposit
2006-06-09 12:01:17 · answer #6 · answered by idontkno 7 · 0⤊ 0⤋
Sure they can
2006-06-16 06:30:01 · answer #7 · answered by Anonymous · 0⤊ 0⤋