Legal Question in Business Law in Virginia

Taking Reservations

Our facility operates by taking reservations over the phone. Therefore, we cannot possibly get a signed receipt from every customer. Anyone who cancels under 14 days prior to their date, owes 100% of the party costs. One customer refused to pay this because they never signed anything. Is there a law that protects our business from this? Isn't it the same as any reservations you would make over the internet?


Asked on 10/21/06, 11:20 am

1 Answer from Attorneys

Jonathon Moseley Jonathon A. Moseley

Re: Taking Reservations

Well, you may always have fights, people who do not want to pay, and you will have to sue them to collect. Obviously, I would encourage you to require advance deposits as much as possible.

A verbal contract is enforceable jsut as a written contract is (except in narrow circumstances like a contract for land).

The problem is PROVING that the person actually agreed verbally. But if you can prove that the person did agree verbally, then this is just as legally binding as a written contract.

It does not matter if the person signed anything. What matters is if you can prove that the person agreed.

It would be perfect if you can tape record their reservations. But I would recommend mailing out a confirmation.

I don't know how much money is involved in these, but I think you may have an entirely different concern in this, however.

If they cancel the services before you have PERFORMED services, then you may have difficulty collecting 100%. If it got to court, you would have to show how much you have been actually harmed. If you don't actually perform the services, you would save on expenses. You would need to be prepared to show with great precision what your lost profits have been, plus any expenses you have actually incurred.

This gets tricky. But only if you actually get to court.

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Answered on 10/22/06, 10:09 pm


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