Legal Question in Business Law in New Jersey

Cancellation of Catering Facility... return of deposit.

Booked a newly constructed reception hall for a wedding. Work was not complete, but we were assured all that remained to be done was ''cosmetic'' so we signed a contract and left a deposit.

We went to the location to see how things were coming along, and there is now a small wall of beveled glass where there was none before (this is STRUCTURAL, NOT cosmetic). There are also already rust stains near outside drain pipes, and the landscaping around the building is not pleasing to the eye.

We feel the place is not as promised and have lost confidence in their ability to perform our reception, and have rebooked at another location... notifying the caterer of our termination of the contract by certified mail. When we received no response for 2 weeks, we faxed the letter and received a phone call the next day.

It has now been 30 days from the day we spoke to them, and have not received our deposit check. How long do they have to return the check in a timely manner?(are we entitled to a multiple of the amout as in a renter's security deposit)

Also, the contract stipulated that we lose $1000(of $5000) deposit as ''administrative fee.'' Is this fee recoupable (especially if they are able rebook the date... the date is 9 months away)


Asked on 1/30/02, 7:39 pm

1 Answer from Attorneys
Glen Chulsky Law Office of Glen H. Chulsky

Re: Cancellation of Catering Facility... return of deposit.

Without seeing the contract, it is hard to give you specific advice. Generally, the law disfavors penalty provisions. Also, generally, a party must mitigate their damages. If you can set forth a claim for consumer fraud, you are possibly entitled to triple your damages. I can't tell whether the consumer fraud law applies at this time without further facts. I would be happy to offer you a no cost consultation to discuss this further with you. You can reach me at 973-479-5814. You can also check out my website for more info at: http://www.lawguru.com/users/attorney/yogidog/index.html

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Answered on 1/30/02, 8:42 pm


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