In this report I will explain the legal significance of a hotel booking and the consequence if there is a breach of contract. I will start by explaining the significance of having a contract, what the contract entails in relation to cancellation and the consequence of a breach. I will include the statutory rules relevant to the conflict to the compromised solution.
A contract is an agreement that is legally enforceable. Contracts provide businesses with security. If contractual promises are broken the innocent party are entitled to seek a legal remedy through the court system. In this instance we are the dominant party relying upon standard terms and conditions of this contract. Our contract is in writing signed by both parties, so therefore is evidence of the contractual terms and shows intention to be fulfilled. This contract shows us that the parties involved do intend to contract. Our agreement when made is a legally binding contract set on specific terms and conditions, which all parties are aware of and governed by English law. The contract is accepted when signed by the other party.
In relation to cancellation our terms and conditions state,
4.3 If an event is Cancelled, the Hotel shall have the right to impose a cancellation charge (“Cancellation Charge”) which shall be calculated as a percentage of the Revenue as detailed below. Timing of Cancellation Percentage of Revenue In excess of 6 months prior to the event 30% 6 – 2 months prior to the event 60% 2 months or less prior to the event 90% 4.4 The Hotel will make every effort to re-sell to another client the accommodation, function rooms, services and other facilities booked in connection with the event and a proportional reduction in the...
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