Client Booking Cancellation.

[Corabar Entertainment]

Funny you should comment on this, Angela, today of all days!

I've been wondering why people on here use the phrase "non-refundable booking fee" instead of simply "deposit" for some time as the reasoning didn't quite make sense to me. The comments, like Toby had said, that it's because a deposit is returnable but a NRBF is not seem to have been the norm. But, today, I've been reading an article on such matters by a Consumer Rights Writer and Legal Advisor in such matters. Basically, a "deposit" is generally non-refundable for the following reason. When a consumer (anyone who buys goods or services - can be a personal transaction or a business one) pays a deposit to a vendor (a seller/provider of goods and/or services) they are entering in to an agreement to buy the full service or product from the vendor. Therefore, a contract is formed. If the consumer decides to not go through with that agreement to buy the full product/service then the vendor is entitled to retain the deposit, as compensation, due to the consumer breaking the terms of the contract (ie - to pay for the full service or product). The vendor may even be able to claim more than the deposit if the cancellation is at short notice meaning that they would be unlikely to resell the product or service in the same timescale or if they have incurred costs in maintaining their side of the agreement before the agreement was cancelled (this doesn't have to be cancelled at short notice). This gives them a "justifiable claim for loss of profit".

So, given this information, there is no reason at all why we shouldn't use the term "deposit" in our agreements. As such, I will be changing the wording in my T&Cs as people have often asked "What's a non-returnable booking fee?" as it's not a term they are familiar with (even though it's pretty self-explanatory!). I think going back to using the phrase "deposit" and including a paragraph that "deposits are non-returnable" is the way forward for me to avoid this confusion.

Just thought I'd point this out!

As I have repeatedly and frequently stated on here, you can call it a 'Blue Monkey' if you like: it's how your T&Cs define it that matters.

[yourdj]

I am going to call it an Angela from now on then.

"Hello Mr client, let me know when you are ready to book and I
will send you my bank details so you can pay the non refundable Angela"

Also

Your Steve is due one month before the wedding date.

[DazzyD]

The impression I got from the article seemed to suggest, to me anyway, that "deposit" is defined in consumer law and, if this is the case, should not require further definition in the T&Cs. I've tried to confirm this today but have been unable to. As I found this paragraph on a consumer legal advice website:

Getting a deposit refunded

The general rule is that a deposit is not refundable. But there are three exceptions to this rule:

if the trader fails to meet their side of the contract - eg, they cannot supply the goods you ordered
if you and the trader agreed that a term of the contract will be that the deposit is refundable (in full or in part).
if you cancel goods you have on layby. The Layby Sales Act sets out specific rules for cancelling a layby.

I've come to the conclusion that, from point 2, further definition is probable required in T&Cs!! (can you tell I've had a quiet day today???)

[Corabar Entertainment]

As you know, Dazzy, the law usually uses 'general rules' to imply things when the evidence is unclear, but it is always preferable if things don't get to that stage. Things like this often aren't actually defined by statute, but have built up over years of case law and usually use the 'reasonableness' test (ie what a reasonable person would understand it to be, etc). Therefore, a clause in your contract defining what you mean by 'deposit' (or any other key term) is the better option (although without getting too technical, there are some things that you couldn't personally define as they are enshrined in law).

[ppentertainments]

I receive quite a few postponements for charity bookings. What I state is that the booking, together with NRBF, can be transferred to a rearranged date BUT the full payment must be made by the date originally on the booking form (ie the date it was due when the booking was made). I also only allow one rearranged date.

The other option they have is to cancel and rebook at a later date, but they would then forfeit the NRBF. I did have this looked over by a solicitor (very briefly, he's a friend of mine) and they could see no problem with it although never went in depth. However, in the past 3 years I've never came across any problem with this arrangement.