Contracts / Cancellation / Cooling Off Period

Contracts / Cancellation / Cooling Off Period

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elise2000

Original Poster:

1,679 posts

233 months

Thursday
quotequote all
Hi All

Hopefully someone here can confirm something for me.

Someone has booked my company to provide musical services for an event next year.

The booking was made by email 12 days ago. I sent them a contract, which they returned 10 days ago. The contract has cancellation terms in it. The one in question here is that if the booking is cancelled 90 or more days before the event, then 20% of the fee is due.

They have emailed me today saying they want to cancel. I have requested the 20% cancellation fee. They have replied stating:
I understand the contract includes a cancellation policy, but as the booking was made remotely and no services have begun, I’m exercising my right to cancel under the Consumer Contracts Regulations 2013, which allow a 14-day cooling-off period. The contract didn’t include any information about this statutory right or provide a cancellation form, so no cancellation fee is payable. With the wedding not until 2026, I’d expect there hasn’t been any work or cost incurred, and there is more than enough time to rebook the date.

I believe that this is not correct as cooling off periods to not apply when services are booked for a specific date as per https://www.citizensadvice.org.uk/consumer/changed...

Before I challenge them, can someone confirm if I'm correct please? I've had many cancellations in the past, but none within 14 days, so want to double check.

Thanks in advance

Southerner

2,012 posts

66 months

Thursday
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Probably easier to let it go, no? Assuming you haven t incurred any personal expense so far? If said customer leaves a stinking review it may do you no favours, even if you are in the right?

elise2000

Original Poster:

1,679 posts

233 months

Thursday
quotequote all
said:
Easier yes, but only inclined to if they are correct regarding the law.

No expenses, just some time booking it in, booking musicians etc.

Tony1963

5,666 posts

176 months

Thursday
quotequote all
elise2000 said:
Easier yes, but only inclined to if they are correct regarding the law.

No expenses, just some time booking it in, booking musicians etc.
Cancellations, especially this far ahead, are to be expected.

Scathing reviews from (rightly or wrongly) annoyed customers are also to be expected.

I suppose it’s up to you to decide whether it’s worth all the time, trouble, lowered reputation etc, when you could spend the time and effort on finding bookings for that slot?

elise2000

Original Poster:

1,679 posts

233 months

Thursday
quotequote all
Tony1963 said:
Cancellations, especially this far ahead, are to be expected.

Scathing reviews from (rightly or wrongly) annoyed customers are also to be expected.

I suppose it s up to you to decide whether it s worth all the time, trouble, lowered reputation etc, when you could spend the time and effort on finding bookings for that slot?
Yes, that's all correct.

I'm just wondering if I'm in the right or not. Not 100% sure whether I'll chase them too much for it yet or not

Tony1963

5,666 posts

176 months

Thursday
quotequote all
elise2000 said:
Yes, that's all correct.

I'm just wondering if I'm in the right or not. Not 100% sure whether I'll chase them too much for it yet or not
Just be nice to them. Things change, and they may well come back to you at a later date.

elise2000

Original Poster:

1,679 posts

233 months

Thursday
quotequote all
Tony1963 said:
Just be nice to them. Things change, and they may well come back to you at a later date.
Oh, I'm always a delight to clients, honest! I'm not that bothered either way, just nice to know if I'm right or wrong.

ozzuk

1,302 posts

141 months

Thursday
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As above, is being right worth the potential cost. Last thing you want is 'My fiancé died and this firm wouldn't refund my money, I'd only signed a week earlier!" review left. I guess it depends how much you rely on reviews/word of mouth for business and therefore can you accept the risk.


LordLoveLength

2,134 posts

144 months

Thursday
quotequote all
Who wrote the contract and when? You need to look at the distance selling regulations - there are exemptions but generally around food/drink, travel tickets etc.
just because you have a ‘cancellation fee’ written into your contract doesn’t necessarily mean it’s legal or enforceable.


elise2000

Original Poster:

1,679 posts

233 months

Thursday
quotequote all
ozzuk said:
As above, is being right worth the potential cost. Last thing you want is 'My fiancé died and this firm wouldn't refund my money, I'd only signed a week earlier!" review left. I guess it depends how much you rely on reviews/word of mouth for business and therefore can you accept the risk.
Yes. Just interested to know if I am right or not

elise2000

Original Poster:

1,679 posts

233 months

Thursday
quotequote all
LordLoveLength said:
Who wrote the contract and when? You need to look at the distance selling regulations - there are exemptions but generally around food/drink, travel tickets etc.
just because you have a cancellation fee written into your contract doesn t necessarily mean it s legal or enforceable.
Contract was written by ourselves, but has stood up in court before.

Distance selling regs say exemptions for "catering or leisure activities for specific dates (eg hotel and restaurant bookings, theatre tickets, catering for a wedding or party)"

rdjohn

6,695 posts

209 months

Thursday
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I am pretty sure that they are correct

“ Your right to cancel a service made at a distance starts the moment you enter into the contract and lasts 14 days”

I think your contract would need to reference the fact that the other party”s rights under the regulations are excluded by your contract and they would need to sign and return to validate their agreement.

In those circumstances, I doubt that they would sign, in any event.

LordLoveLength

2,134 posts

144 months

Thursday
quotequote all
I would doubt that would cover it - there is a financial loss for food, tickets etc but providing a service a year in advance? Not so much.
The judge would need to consider your actual financial loss (not what you think you’ve lost/ could have earned)
and also consider whether it could be reasonably foreseen that a cancellation may occur - ie your typical business risk.

2 options - suck it up or ask a judge to decide.

alscar

6,232 posts

227 months

Thursday
quotequote all
I’m not sure if I would ever have agreed to a 20% cancellation charge effective that far ahead but if they signed the contract with that in and there is nothing else date wise about cancellations then I suppose in theory you are right.
Slightly curious though as to why cancel within the time frame you have given which almost reads of a change in mind as opposed to something awful happening.
Not sure what 20% amounts to but I doubt you have “spent “ a tiny fraction of that in either your time or expenses.
I’d be tempted to just let it go.
As others have said the damage an adverse review could do to your business will outweigh anything you may recover and turn it into a Pyrrhic victory.

elise2000

Original Poster:

1,679 posts

233 months

Thursday
quotequote all
LordLoveLength said:
I would doubt that would cover it - there is a financial loss for food, tickets etc but providing a service a year in advance? Not so much.
The judge would need to consider your actual financial loss (not what you think you ve lost/ could have earned)
and also consider whether it could be reasonably foreseen that a cancellation may occur - ie your typical business risk.

2 options - suck it up or ask a judge to decide.
I think that a ticket for a concert next year would be a similar situation perhaps?

I'm not taking it to court - too 50/50 and not worth the time!

elise2000

Original Poster:

1,679 posts

233 months

Thursday
quotequote all
alscar said:
I m not sure if I would ever have agreed to a 20% cancellation charge effective that far ahead but if they signed the contract with that in and there is nothing else date wise about cancellations then I suppose in theory you are right.
Slightly curious though as to why cancel within the time frame you have given which almost reads of a change in mind as opposed to something awful happening.
Not sure what 20% amounts to but I doubt you have spent a tiny fraction of that in either your time or expenses.
I d be tempted to just let it go.
As others have said the damage an adverse review could do to your business will outweigh anything you may recover and turn it into a Pyrrhic victory.
It's pretty standard in the wedding industry to have similar terms. As weddings are generally booked a long time in advance. The 20% is £140. I suppose it depends what I value my time at! Think I'll let it go.

LordLoveLength

2,134 posts

144 months

Thursday
quotequote all
elise2000 said:
LordLoveLength said:
I would doubt that would cover it - there is a financial loss for food, tickets etc but providing a service a year in advance? Not so much.
The judge would need to consider your actual financial loss (not what you think you ve lost/ could have earned)
and also consider whether it could be reasonably foreseen that a cancellation may occur - ie your typical business risk.

2 options - suck it up or ask a judge to decide.
I think that a ticket for a concert next year would be a similar situation perhaps?

I'm not taking it to court - too 50/50 and not worth the time!
I’m not so sure? Lots of different things at play for a concert ticket - venue will have been booked and costs incurred plus ticket then has a face value and resale value (and resale cost) which is something a customer would reasonably expect in the t’s & c’s?

Other thing is how did they pay? If it’s by credit card or debit card they would just ask the card issuer for a chargeback- good luck arguing against that one! It’s certainly not worth £140 of the card issuers time to argue it out.

TonyF1

204 posts

66 months

Thursday
quotequote all
You aren’t in the right as they have the right under the 14 day rule as per statutory rights.

Even outside the 14 days you’d need to show loss e.g. turned down other booking. Move on and put is down to the cost of doing business. People are fickle so take it as a lesson in doing business.

elise2000

Original Poster:

1,679 posts

233 months

Thursday
quotequote all
TonyF1 said:
You aren t in the right as they have the right under the 14 day rule as per statutory rights.

Even outside the 14 days you d need to show loss e.g. turned down other booking. Move on and put is down to the cost of doing business. People are fickle so take it as a lesson in doing business.
Outside the 14 days it’s different. No loss needs to be shown- this has stood up in court several times before.

Yep, always more to learn isn’t there.

elise2000

Original Poster:

1,679 posts

233 months

Thursday
quotequote all
LordLoveLength said:
elise2000 said:
LordLoveLength said:
I would doubt that would cover it - there is a financial loss for food, tickets etc but providing a service a year in advance? Not so much.
The judge would need to consider your actual financial loss (not what you think you ve lost/ could have earned)
and also consider whether it could be reasonably foreseen that a cancellation may occur - ie your typical business risk.

2 options - suck it up or ask a judge to decide.
I think that a ticket for a concert next year would be a similar situation perhaps?

I'm not taking it to court - too 50/50 and not worth the time!
I m not so sure? Lots of different things at play for a concert ticket - venue will have been booked and costs incurred plus ticket then has a face value and resale value (and resale cost) which is something a customer would reasonably expect in the t s & c s?

Other thing is how did they pay? If it s by credit card or debit card they would just ask the card issuer for a chargeback- good luck arguing against that one! It s certainly not worth £140 of the card issuers time to argue it out.
Maybe. Although with a concert ticket there are 10s/100s/1000s of tickets per event, so the costs incurred per ticket are generally relatively minimal. Resale cost is for the hassle of selling the ticket again, which is comparable to getting another booking for the same date perhaps?

No deposit paid, just signed contract agreeing to pay the 20% if cancelling at this time.