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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 8564
Experience:  I have been practising for 30 years.
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I am a sole trader. I'm planning a wedding exhibition in

Customer Question

I am a sole trader. I'm planning a wedding exhibition in September, but I'm looking at having to cancel the event due to low stand sales.
I signed a contract for the venue a few months ago. I've paid a 25% deposit (£3000ish). The contract basically states that if I cancel now, I'll still have to pay the remaining balance on room hire.
I was looking into getting some sort of insurance to cover any refunds I may have to give to exhibitors, and a policy which will cover my remaining liabilities for the room hire.
Do you know if I may be able to do this?
Submitted: 5 months ago.
Category: Law
Expert:  F E Smith replied 5 months ago.

You will not be able to take out any insurance for this now. It is too late in the day. You may have been able to take out insurance earlier on, when planning the event but it’s unlikely because the attendance will be contingent on the amount of promotion you do. If it is an exterior event it is possible to get adverse weather insurance but it is prohibitively expensive.

If you cancel now, with 8/12 weeks to the event it’s unlikely that the venue be able to enforce full payment. They would only be entitled to recover their loss of profit for the day. Depending on whether they were providing marquees and suchlike they wouldn’t be entitled to the full cost because they hadn’t provided the full service.

It may say it in the contract but it’s unlikely to be enforceable.

Can I clarify anything for you?

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Best wishes.

FES.

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