Non Refundable Deposit on Wedding Venue

Tozer

Altarf wrote: »

By cancelling the wedding reception the couple have breached the contract with the hotel.

The hotel is entitled to damages for that breach, but only for the amount that they will lose due to the cancellation. i.e. only for any costs that cannot be avoided and loss of profit, not the whole value of the original contract.

However the hotel has a duty to mitigate their loss, so if they can re-hire the room they should do so to reduce any loss.

If they do re-hire the room, but have suffered additional costs (e.g. advertising) and/or a decrease in profit (by renting the room cheaper), then that would be all the damages that they would be entitled to.

If they could not re-hire the room then as I mentioned before, they could claim damages for any costs that cannot be avoided and loss of profit.

However as the booking is for June 2010, it seems rather unlikely that they will not be able to re-hire the venue by then.

What I would be tempted to do is leave matters as they are, and not communicate any further with the hotel, but closer to the 26th June 2010 get someone to contact the hotel and ask for their current prices and if they have availability to cater a wedding on that date.

If that day is booked and prices have not fallen, ask again for the return of the deposit, and if they refuse sue them. They would then need to demonstrate to the court what their losses were.

Absolutely correct.