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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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Afternoon all, I am planning the startup of an event hire

Resolved Question:

Afternoon all,
I am planning the startup of an event hire business (think photo booths, candy cart stalls, popcorn machines etc) primarily aimed at the wedding market. I think there is opportunity here as a lot operators out there have weak branding, appearing quite 'down-market' and perhaps a little untrustworthy. My question revolves around limiting my start up investment (risk) for an us yet untested market.
Let's say I invest £10,000 in equipment and then start taking bookings (for typically 12 months in advance), I am going to see no return for 12 months and I'm at risk of losing £10k (on top of website, advertising, company formation etc costs...) if the market is not there. Alternatively....
Where would I stand if I set everything up (branding/website/back end etc) and then start taking bookings (£100 deposit paid in advance to secure the booking) with the intention of purchasing the assets prior to the booking. If I can get 100 bookings then I can use the cash inflow to purchase 100% (or 50 bookings to offset 50%) of my equipment rather than my own savings. Is this legitimate in the eyes of the law?
I understand there are other risks such as brand credibility, lack of marketing material etc...but I am completely blind as to whether this is even worthy (legally) of consideration?
Any advice or knowledge would be very gratefully received.
Many thanks,
Danny
Submitted: 2 years ago.
Category: Law
Expert:  UKSolicitorJA replied 2 years ago.
Hello,
There is nothing restricting you from doing what you are proposing to do but in the event that you are unable to fulfil your contractual obligations, you should be prepared to face claims for breach of contract which could include claims to refunds and damages.
It is therefore important that your terms and conditions of engagement provide that your liability is limited to refunding whatever money has been paid to you in the event that you are unable to meet your obligations for whatever reason and that you will not be liable for any direct or indirect losses which may arise as a result of your failing to meet your obligations.
May I help further?
Customer: replied 2 years ago.

Many thanks for your answer.

If I limit my liability in my terms and conditions (to say the money paid only) - Once a customer has signed terms and conditions, is this legally binding and would be enough to protect me from any further legal action?

Expert:  UKSolicitorJA replied 2 years ago.
Yes, it would be legally binding and should protect you.
All the best
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