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Event Cancellation With No Contract


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I am organising a series of events over the Bank Holiday weekend and due to poor ticket sales, had to cancel one. The band who were due to play have been notified that they are no longer required to play.

 

This is where the problem lies. They confirmed their availability by e-mail and did not request a deposit. They never asked us to sign a contract but I did send them a very basic purchase order, just to keep our books right for when the invoice arrived after the event.

 

They have now come back to me and asked for the FULL AMOUNT to be paid to them and I feel we should not have to do this as this was NOT stated up front.

 

Can someone please offer me some advice?

 

Many thanks.:(

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I'm assuming this is for the May Bank Holiday? If so, you have cancelled with less than a weeks notice. Meanwhile, the band could have accepted a booking and completed it without it being cancelled by the operators.

 

Despite you not 'signing a contract' it was you who cancelled, and if the situation was reversed, the band not turning up at YOUR event, you would rightly expect to be compensated - so should they.

 

I'd explain the situation to them and offer to pay half and apologise for the problems, which were outwith your control.

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If you sent a purchase order for the goods/services then you confirmed acceptance and willingness to pay.

 

The band will probably have turned away other work/bookings on the strength of your booking, I'm assuming you didn't book them on the condition that if ticket sales were poor then you would cancel them.

 

Regardless of written contract or lack of deposit, you have a contract with them, which if you break you are still liable for the FULL AMOUNT.

 

Mossy

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liable for the FULL AMOUNT
In the absence of any written contract of terms and conditions, I would have though that there would be some leeway around what the level of liability would be.

 

The band, for example, would no longer be incurring any direct costs for performing (travel / accomodation etc.). That reduces the liability to the organiser.

 

There is the possibility (however slight) that the band could rebook elsewhere, mitigating the opportunity cost of the cancelled booking - again, reducing the liability (this is obviously contingent on the notice period given, although the principle holds).

 

My point is that there doesn't appear to be any great certainty the OP's liability is for the full cost of the booking.

 

Unless, of course, there is a point of law or precedent that might be brought to bare, in which case I would gladly eat my words.

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Unless I am mistaken, contract law is based either on a written or a verbal contract, and it consists of expressed terms (those stated) and implied terms (those not stated).

 

Notwithstanding anything illegal or unfair I would suggest that a reasonable person would assume that if they booked a performing artist and then cancelled that they would be liable for the full amount since it is reasonable to assume that they have lost the opportunity to take another booking whilst under the assumption they were booked for this event.

 

I accept your point about not incurring travel costs etc so that's a reasonable deduction, as is having zero liability IF the band get an alternative booking on that day which would then reduce their losses to zero.

 

Mossy

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