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Contract question

habibi105habibi105
First Comment
in New Jersey
So i got a copy of the contract at my venue and there is something in the fine print I dont really understand so i thought my fellow knotties would be able to help out :)

"In the event the function is not held, then the patron agrees to pay 75% of the price of the minimum number of persons guaranteed for this reservation, as liquidated damages, regardless whether the caterer is able to use the room on that date."

That sounds unfair to me!!  Why is that? If the venue finds another party to host that day then why should I still have to pay 75% of the price?

The contract does not specifiy the timing and when exactly does this rule apply?? like up until how long before the wedding?  
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Re: Contract question

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    CaramelBride973CaramelBride973
    First Comment
    edited December 2011
    A lot of venues do this. My contract gave me three days to get a full refund and the closer to the wedding date more of a percentage is due. Like if I cancel now then I would owe half if I do it like a week before the wedding we would do the owe the whole thing. This is only if we cancel not if there is some sort of disaster or something happens to the venue. It is just something they do to protect themselves and a lot of venues vary some say you owe the whole thing only if they can't book the date. What your contract says seems pretty standard. If you are worried about I think they have something called wedding insurance that might help just in case it need to be cancelled. HTH
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    hvansadershvansaders
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    edited December 2011
    This is normal with all venues.  I would call to clarify when this kicks in.  Mine is up to six months and I just lose the deposit and any payments made.  If I were to cancel only a few months before I would owe the whole amount.

    Venues do this to protect themselves and guarantee that they will make money.  Think of it realistically.  If you cancelled now, they could rebook it, but if you cancel with only six months or less to go, they probably will not be able to rebook that room, especially if the place caters to weddings. 
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    cutiepie12702cutiepie12702
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    edited December 2011

    I am pretty sure mine said that if we cancelled they were able to keep all of the money we already paid up until that point. I knew I wasn't going to cancel my wedding no matter what, so it really didn't bother me that much.

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    futuremrsdaviesfuturemrsdavies
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    edited December 2011
    Mine has the exact same language, and while it isn't fair and you can attempt to negotiate that point with them, it isn't all that uncommon in contracts.  IF it really bothers you, try to negotiate with them or find a different venue.  Do not sign something that makes you feel uncomfortable.
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    dalm0mdalm0m member
    First Anniversary 5 Love Its First Comment Combo Breaker
    edited December 2011
    It's called a liquidated damages clause. 

    If you did not sign the contract, you are free to negotiate it.  Maybe it can come out.  Maybe it can be rephrased. 

    If you signed you are stuck.  The venue will press for payment & if it goes to court they will win.

    If you object that much, vote with your feet & book elsewhere. 
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    GiaspoGiaspo member
    5 Love Its Name Dropper First Comment Combo Breaker
    edited December 2011
    You could ask what they'd do in the event of an emergency.  During Hurricane Irene, our venue had 3 weddings that weekend and rebooked all of them, at no charge, for open dates this fall.  If it's something really bad, hopefully they will work with you.  However, if your wedding is cancelled outright, they would be entitled to the payments up to that point.  Like pp, ours was a percentage that got larger as the date got closer. 
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    USER876USER876
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    edited December 2011
    75% may exceed your deposit amount depending on when it's cancelled.  So that is what your maximum loss is if you cancel the event. (or as they put it, if the event is not held).  What if it's not held because the place has no power?  They still take your 75%?  I don't like the wording, i would mark it up, and put language in there to protect you in case of their non-performance.
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    DoubleASDoubleAS
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    edited December 2011
    In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/local-wedding-boards_new-jersey_contract-question?plckFindPostKey=Cat:Local%20Wedding%20BoardsForum:90Discussion:a9443d07-955a-4826-9dd9-833f1888342bPost:5d01b342-c1cf-4c3a-a98c-c97edd1f838b">Re: Contract question</a>:
    [QUOTE]I am pretty sure mine said that if we cancelled they were able to keep all of the money we already paid up until that point. I knew I wasn't going to cancel my wedding no matter what, so it really didn't bother me that much.
    Posted by cutiepie12702[/QUOTE]

    This exactly.  We pretty much skipped that part, haha, but the manager verbaly said that we would lose only our deposit and we read everything when we got home.
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    LissyM83LissyM83 member
    Name Dropper First Anniversary First Comment
    edited December 2011
    Our contract depends on when you cancel. If the cancellation occurs before 6mos of the date of event, we only lose our deposit. If it's after 6months, the entire hall is due in full. It varies depending on your hall b/c every contract we looked at was different. 
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