Non refundable deposit wedding venue

zwroberts

Hi,

I've booked a wedding venue. Total cost was £7500 and we paid a 'non refundable' deposit of £2500. Since then, due to the covid crisis we have found ourselves in financial difficulty and can no longer afford the wedding so we've unfortunately had to cancel.

The wedding was in April 2020 - 8 months away. 

I understand  that the contract states it is non refundable but surely 2500 is disproportionate to their losses incurred due to the cancellation? 

Any thoughts or advice would be greatly appreciated!! 

Thanks 

Aylesbury_Duck

Presuming you mean April 2021 then yes, they should limit what they retain to their actual losses.  It may take some time to discern that though, since it's 8 months away.  You don't know if they've turned away potential bookings for that date already, or if they're going to get potential bookings.  It's fair that they refund you if they get a replacement booking of the same or greater value than yours, but it's fair that you take a hit if they can't get a replacement booking.

Have you spoken to the venue yet?  What did they say?  I'd ask them to re-advertise the venue for that date and if they get a booking, they should return your deposit minus a reasonable amount to reflect any administrative costs they incur, plus any difference in booking value if the replacement booking is a smaller cost.  I'm sure they'd rather get a full-paying booking than simply retaining your deposit and not bothering to put the effort in to re-sell it.  You may have to wait some time though, because I suspect people are in wait-and-see mode when it comes to booking at the moment.  I certainly wouldn't be paying deposits for large functions in the next year.  We have no idea what circumstances might be next week at the moment. 

Undervalued

zwroberts said:

Hi,

I've booked a wedding venue. Total cost was £7500 and we paid a 'non refundable' deposit of £2500. Since then, due to the covid crisis we have found ourselves in financial difficulty and can no longer afford the wedding so we've unfortunately had to cancel.

The wedding was in April 2020 - 8 months away. 

I understand  that the contract states it is non refundable but surely 2500 is disproportionate to their losses incurred due to the cancellation? 

Any thoughts or advice would be greatly appreciated!! 

Thanks 

Possibly but keep in mind that if they could demonstrate that their losses were more than £2500 you could also be liable for the extra!

Yes, they have a legal duty to take reasonable steps to minimise their losses. If they do then you are entitled to a partial refund at least although even if they manage to secure a equivalent value booking they may have some additional advertising and admin costs which they would be entitled to retain.

Whilst I sympathise it must be said that a "fully refundable deposit", which is what a lot of people seem to expect, isn't actually a deposit at all! 

Aylesbury_Duck

Undervalued said:

zwroberts said:

Hi,

I've booked a wedding venue. Total cost was £7500 and we paid a 'non refundable' deposit of £2500. Since then, due to the covid crisis we have found ourselves in financial difficulty and can no longer afford the wedding so we've unfortunately had to cancel.

The wedding was in April 2020 - 8 months away. 

I understand  that the contract states it is non refundable but surely 2500 is disproportionate to their losses incurred due to the cancellation? 

Any thoughts or advice would be greatly appreciated!! 

Thanks 

Possibly but keep in mind that if they could demonstrate that their losses were more than £2500 you could also be liable for the extra!

Yes, they have a legal duty to take reasonable steps to minimise their losses. If they do then you are entitled to a partial refund at least although even if they manage to secure a equivalent value booking they may have some additional advertising and admin costs which they would be entitled to retain.

Whilst I sympathise it must be said that a "fully refundable deposit", which is what a lot of people seem to expect, isn't actually a deposit at all! 

Can you imagine the outrage if a company viewed deposits the way some consumers do? 

"Dear Sir.  We have cancelled your booking and returned your deposit for your forthcoming wedding because we've had a booking for a larger party on the same date."

zwroberts

Yes 2021 sorry. My partner emailed them asking for what options we've got. They've said that cancellation is voluntary and non refundable as per the contract. They've also given us the option to postpone until 2022 - for an extra 4k on top!

I wouldn't mind if the deposit was reasonable, but can't see how cancelling with 8 months notice justifies 2.5k.

I've emailed myself this morning confirming the cancellation and requesting a refund, less any costs incurred due to the cancellation.

 Awaiting response.... 

k3lvc

zwroberts said:

I've emailed myself this morning confirming the cancellation and requesting a refund, less any costs incurred due to the cancellation.

 Awaiting response.... 

I wouldn't be holding your breath for a response from other than 'thanks for your cancellation' - they're as likely to need the money as you are and I'm sure it won't be too difficult for them to whip up some numbers showing the £2.5k costs incurred 

Undervalued

zwroberts said:

Yes 2021 sorry. My partner emailed them asking for what options we've got. They've said that cancellation is voluntary and non refundable as per the contract. They've also given us the option to postpone until 2022 - for an extra 4k on top!

I wouldn't mind if the deposit was reasonable, but can't see how cancelling with 8 months notice justifies 2.5k.

I've emailed myself this morning confirming the cancellation and requesting a refund, less any costs incurred due to the cancellation.

 Awaiting response.... 

It probably represents their profit had the booking gone ahead (one third??). As said earlier they have a duty to make reasonable efforts to minimise their losses and if they succeed you are entitled to at least some of the £2.5K back.

Sorry to be blunt, but if you didn't consider the deposit "reasonable" then you shouldn't have paid it and taken your business to a more "reasonable" supplier.

davidmcn

zwroberts said:

I've emailed myself this morning confirming the cancellation and requesting a refund, less any costs incurred due to the cancellation.

They're not likely to know what their costs are until next April.

zwroberts

Sorry to be blunt, but if you didn't consider the deposit "reasonable" then you shouldn't have paid it and taken your business to a more "reasonable" supplier

A woman wants what a woman wants. 

Heinsight and all that. Didn't plan on a global pandemic putting us in a position where we'd be unable to afford it all. 

If they can justify the 2.5k as losses incurred then so be it, I just can't see it myself given the time frame of cancellation..?

Aylesbury_Duck

zwroberts said:

Sorry to be blunt, but if you didn't consider the deposit "reasonable" then you shouldn't have paid it and taken your business to a more "reasonable" supplier

A woman wants what a woman wants. 

Heinsight and all that. Didn't plan on a global pandemic putting us in a position where we'd be unable to afford it all. 

If they can justify the 2.5k as losses incurred then so be it, I just can't see it myself given the time frame of cancellation..?

As davidmcn says, you may have to wait until April for the return of your deposit in part or full.  They won't know their losses until then.

pinkshoes

zwroberts said:

Yes 2021 sorry. My partner emailed them asking for what options we've got. They've said that cancellation is voluntary and non refundable as per the contract. They've also given us the option to postpone until 2022 - for an extra 4k on top!

I wouldn't mind if the deposit was reasonable, but can't see how cancelling with 8 months notice justifies 2.5k.

I've emailed myself this morning confirming the cancellation and requesting a refund, less any costs incurred due to the cancellation.

 Awaiting response.... 

It doesn't work like that...

You have booked a date and that is a sale for their business. They have to mitigate their losses e.g. food, extra staff etc... will no longer be needed. They will need to make efforts to re-advertise and fill that date. But why should they lose out on a profit because you have changed your mind? 

Should they re-book that date, then yes, you will be entitled to a refund less any costs of advertising and admin for rebooking that date. 

If they don't fill the date, then you could be liable for more than the £2500. 

Don't forget to check near the date to see if it is still free! If it is still free, then I suggest you turn up on the day and make use of the venue!