GOING LEGAL

Wedding Cancellation... WHO IS ENTITLED TO WHAT

What should businesses do if a wedding has been cancelled or postponed? Emma Ward, partner and solicitor in Nelsons’ dispute resolution team, explains the options

With large weddings no longer able to take place across the UK as a result of the

coronavirus pandemic, thousands of venues and suppliers are losing out on business at what has always been one of the most lucrative times of the year.

Since lockdown measures were introduced on 23 March, according to a study by wedding planning app Bridebook an estimated 64% of weddings globally have been forced to cancel or postpone, leaving many businesses wondering what they should be doing if this affected them and work they were contarcted too carry out..

On Tuesday, 23 June, the government announced that wedding services for up to 30 people will be allowed to take place from 4 July, providing social distancing guidelines are adhered to. “While there is a glimmer of hope on the horizon, the question remains as to what businesses in the wedding industry can do when faced with a slew of cancelled events and requests for postponement or cancellation,” says solicitor Emma Ward.

“The changes announced by the government apply only to wedding ceremonies, with large wedding receptions or parties remaining prohibited. Receptions and parties will only be able to take place with a maximum of six people from different households (in which case, the celebrations will need to take place outdoors and with social distancing), or with no more than two households (in which case the party can be indoors or outdoors but again, social distancing will need to be observed).

“According to wedding website Hitched, the wedding industry is worth in excess of £10 billion each year – with the average wedding (from engagement through to honeymoon) costing £36,000. These are clearly very large figures but perhaps not that surprising given the number of different businesses that provide their expertise and products to the happy couple.

“From venues and florists to photographers and live bands, all these industries, like so many others, will be reeling not only from the impact of Covid-19, but also the refusal of many insurers to accept claims made under either business interruption insurance or wedding insurance.”

So what should a business do when a wedding is vancelled or postponed? According to Emma, the first step in most cases will be to have a look at the contract – what did you agree? Is there a clause that dictates what will happen in the event that either party cannot perform their obligations under the contract due to

circumstances outside their control has ordered flowers and your contract 2015, which confirms that terms in a (known as force majeure)? Does that includes provision for you to be paid consumer contract must be fair (this clause stipulate what will happen in in advance, with the date for payment applies equally to the force majeure relation to any money paid or due at having passed, you would be well point, mentioned earlier). the date of the force majeure event? within your rights to require that pre“While this should always be

“If there is no such clause,” payment be made, up to the cost of a consideration for businesses explains Emma, “suppliers will need those flowers. when drawing up contracts, the to consider whether the contract “If the venue or florist’s contract Competition and Markets Authority has been frustrated by an event that does not include provision for recently confirmed that it considers was unforeseen when the contract pre-payment (or the time for that exceptions to a full refund of was entered into. A contract can be pre-payment has not passed), even deposits paid to be ‘rare’ if the frustrated if: if it has incurred expenses prior to contract has not been performed as 1. The contract becomes impossible the contract being discharged, the agreed,” says Emma. to perform and/or either party’s venue/florist will not be able to claim “In times like this, it’s very easy obligations become radically those from the couple.” for businesses to get overly hung different because of that unforeseen One question frequently asked up on their legal rights; clearly event. now is what is the situation if the these are important, but they do risk 2. The contract does not expressly say couple want to postpone the obscuring the commercial reality of what will happen in such a situation. circumstances. The changes announced by “It might be the case that 3. The unforeseen event was your contract will enable not caused by either of the the government apply only to you to retain a deposit or parties. wedding ceremonies, with large require that a prepayment for a cancelled wedding still “In the case of contracts wedding receptions or parties be made. In some instances, entered into before any news reports of coronavirus began remaining prohibited it may be absolutely critical to the business’ continued to emerge, it seems pretty existence that those safe to say that a contract to deliver wedding, now that weddings can take payments are made. the wedding ceremony and breakfast, place again. “However, if finances allow for example, would be considered “While small wedding ceremonies (particularly bearing in mind the to be frustrated. If the doctrine of and even smaller receptions were support available to business frustration does apply, the contract able to take place from 4 July, it is through the Coronavirus Job is immediately brought to an end, likely that couples who were planning Retention Scheme (CJRS), support with the parties discharged from any larger ceremonies in the coming grants and business interruption outstanding contractual obligations.” months will want to hold off on their loan scheme), it would be worth

And what if the contract is plans due to the restrictions on remembering that the engaged terminated, does a supplier need to attendee numbers. couple want to get married and refund money that has been paid? “Again, you’ll need to have a look they want to do that at your venue/

“Under the Law Reform at your contract to see if it contains using your flowers/dancing to your (Frustrated Contracts) Act 1943, any terms that would deal with a request music/wearing that dress.. advance payments made before the to postpone or cancel. Of particular “It may be possible to reach an occurrence of the frustrating event concern for many businesses will be agreement with them that secures will be entitled to be recovered, whether or not you can keep deposits their business with you in say subject to the ability of the receiving paid or require that the couple make six months’ time – you may find party to offset any expenses already payment to you for what would (in that such an agreement is more incurred,” says Emma. the case of a postponement) be a profitable than insisting on payment

“If you’re the venue therefore, and variation to the contract or (in the case of what is likely to be a fraction of you’ve already ordered food and drink of a cancellation) be a termination of the amount that would be payable if for the wedding breakfast and your the contract. the wedding goes ahead later in the contract entitles you to receive a pre“In either case, suppliers should year or next year.” payment as at the date the contract is bear in mind not only the strict terms discharged, you’re entitled to be paid of the contract, but also the impact For more information visit www. for those expenses incurred. of consumer protection legislation, nelsonslaw.co.uk/business“Likewise, if you’re the florist who such as the Consumer Rights Act disputes or call 0800 024 1976.