Legal Question in Consumer Law in New York
Want to break my contract with catering hall
How can i break my contract with
catering hall?
I signed a contract 2 weeks ago for a
catering hall. I want to leave because
the managers are rude.
Unfortunately the contract states
that if i break the contract and they
cannot find someone who wants to
have an event on the same day, I
am responsible for the entire amount
I would have paid if i had had my
wedding there anyway. How do I get
out of this one?
2 Answers from Attorneys
Re: Want to break my contract with catering hall
I would be happy to review the options with you. I would need to see a copy of the contract in order to advise you properly. If you are interested in retaining me please contact me directly via email.
Re: Want to break my contract with catering hall
This type of clause seeks "liquidated damages." In other words, since calculating the damage is difficult, there is an agreement at the beginning of the contract about what would be the damages should a party breach the contract.
A liquidated damage clause must be reasonable. Based on the law (and in a form contract I have drafted for a wedding entertainment company), liquidated damages are on a sliding scale. The Court weighs the necessity of liquidated damages against a "penalty" for breach of contract, which would be unenforceable.
Therefore, if the wedding is next week, you are obligated to honor the contract. If the wedding is in 2 years, the clause would be deemed a penalty and is unenforceable.
For immediate advice, complain to the head honcho. Tell the hall that because of the behavior of the manager you want to cancel the contract. The hall does not want to litigate - it wants the client. The hall may address and work with your concerns. If not, isn't the wedding more important than the aggrivation?
Mike.
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