Wedding vendor refunds

Tiggy748

I'm setting up as a wedding venue decor and prop supplier. 

I'm looking into the legalities of refunds when the couple cancel. 

If a couple book and pay a deposit I understand they have 14 day's to cancel and receive a full refund.

But what about other circumstances? 

Every wedding supplier seems to be under the impression that if a couple cancel then I have to refund everything anyway regardless of timings or amount paid. Surely this isnt right?

I would offer refund if cancelled within 12 months because I can potentially resell the date but any closer and it becomes very unlikely. 
If I can resell the date then obviously I would refund the original couple. 

Obviously covid meant we had frustrated contracts but this no longer applies? 


I'm also looking at the possibility of them just paying a deposit the refusing to pay the balance because of cancellation. Presumably I can take action to recover this money if absolutely needed?

marcia_

 Are you an online business?  Matters when it comes to refunds. 

 My friend planned a wedding that was cancelled and the only people who refunded was the photographer. Every other provider gave them contracts specifying no refunds. 

prettyandfluffy

People can insure against cancellation, maybe you can recommend that this is taken out as part of your cancellation policy.

turnitround

Surely if a couple cancel and have only paid a deposit you would just hold onto the deposit. You wouldn't charge the full balance as you would not be providing the service or doing the work. Unless of course it is near to the date and you have started preparations.

Savvy_Sue

Get your t&c checked by a solicitor specialising in this area. Yes, you'll have to pay for this, but if you don't it may be even more expensive. 

DullGreyGuy

You need proper legal advice so that you have someone to call (or sue) if the advice proves to be wrong.

Generally, if someone breaks their contract (ie cancels and says they wont pay up etc) then you are entitled to ensure they cover your losses caused by the breach. It's therefore a bit of a long tail thing because if you resell the slot your losses are less than if you fail to resell it. 

However... whilst the above is what you will see repeated time and time again on here the courts have increasingly accepted that having reasonable fixed costs rather than individually calculated actual losses has benefits for all parties. Insurers tend to charge a flat fee for cancellation rather than varying it by channel of purchase and duration before cancellation which both materially impact the actual cost incurred.

Tiggy748

Thanks. 
It would be mainly "distance selling" and I'm happy to give 14 days regardless. 

It's mainly loss of income for me as I won't incur any real costs till the day (travel hotel food extra staff etc) Although I will have printing costs of about £200 which won't be done till a few days out  

The main issue is that if they cancel it becomes extremely hard to refill their date unless there is still a decent lead time. 

I'm very niche- my styling package covers all signage, flowers ceremony and reception decor photo booth and cake. Which most people will have sorted a good year out, so its very hard for me to resell

Mistral001

DullGreyGuy said:

You need proper legal advice so that you have someone to call (or sue) if the advice proves to be wrong.

Generally, if someone breaks their contract (ie cancels and says they wont pay up etc) then you are entitled to ensure they cover your losses caused by the breach. It's therefore a bit of a long tail thing because if you resell the slot your losses are less than if you fail to resell it. 

However... whilst the above is what you will see repeated time and time again on here the courts have increasingly accepted that having reasonable fixed costs rather than individually calculated actual losses has benefits for all parties. Insurers tend to charge a flat fee for cancellation rather than varying it by channel of purchase and duration before cancellation which both materially impact the actual cost incurred.

This.  In reality a non-refundable deposit is only non-refundable if it can be shown by the vendor that they suffered damages to the value of the deposit.  This is fairly universal in contracts.  No part of the deposit can be a pure penalty. We often hear of penalty clauses in contracts, but in the text of contracts they are called various things, such as liquidated damages, but not penalties.  Basically the vendor is not allowed to profit from retaining deposits.

As suggested legal advice is needed.  Also perhaps a good accountant to come up with figures to backup any deposit or any part of a deposit that you do not refund.