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UK-Justice
UK-Justice, Barrister
Category: Law
Satisfied Customers: 16193
Experience:  Called to the Bar in 2007
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Hi, The company we had booked our daughters wedding with have

Customer Question

Hi, The company we had booked our daughters wedding with have gone into administration. Although the administrators are still taking bookings and said they would continue for to run the business, they were only able to say 90% that this would be the case in Sept 2013. Because of this we cancelled the wedding and are moving to another venue. We have paid the original venue a deposit, the administrators are now saying we must pay a 25% of total amount cancellation fee, as per the contract as there is no clause saying cancellation fees will be waived in company go into administration. My question is, can this be correct, as surely by going into administration and not being able to 100% say wedding will take place must break the contract in the first place?
Confused mum of bride
Submitted: 4 years ago.
Category: Law
Expert:  UK-Justice replied 4 years ago.
Thanks for your question, my name isXXXXX will do whatever I can to help you today.

How did you pay for this?

What does the contract say about a party going into liquidation?
Customer: replied 4 years ago.

Hello Nic,


Paid for deposit with credit card. Haven't yet paid 25% as paperwork is on route from administrators.


 


There is no mention of what happens if they go into administration only that they can cancel if they or we become insolvent or bankrupt.


Lynda

Expert:  UK-Justice replied 4 years ago.
Thanks.

They clearly can not guarantee that the business will be running when the event is due.

As such you should not pay the balance and end the agreement. This is because the company is in breach of contract by going into administration.

That is not your fault, it is their own actions - had it not been for them going bust you would have continued.

As for the 25% you should contact your credit card company as they are jointly liable under the Consumer Credit Act.

Normally there is a 90 day limit for claims via your card company but based on the fact they have gone bust - you may have a claim.

I hope this helps and if there is anything else I can do to help you today please let me know.


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Expert:  UK-Justice replied 4 years ago.
I'm just following up with you to see how everything is going. Did my answer help?

UK-Justice
Customer: replied 4 years ago.


Yes thankyou

Expert:  UK-Justice replied 4 years ago.
Great