dealing with subrogation

[atticus]

You now say you did a "preshoot". How does this fit with your earlier statement that you "covered wedding"? I am getting confused as to whether you have performed any part of the contract.

[des8]

I would suggest that any cancellation term providing forfeiture of all monies paid on cancellation by consumer falls foul of the Unfair terms in Consumer Contracts 1999.

Suggest you negotiate settlement with the insurers

[Manxman]

I'm confused. So when you said:

thanks Manxman , We are wedding photography company. so this client had a contract to cover wedding and reception. We covered wedding and not reception because they postponed the reception...

that wasn't entirely true, because the wedding didn't take place?

I'm not a lawyer and I can't give legal advice, but you might want to think about the following:

1. In answer to your original question, if your clients have received a payout from their insurers, then yes, I believe the insurers can sue you if your clients could have done so. (eg if your clients could have sued you themselves for recovery of the advance payment either in full or in part).

2. What would have happened to the advance payment if you had cancelled?

3. If it got as far as court I'm not convinced that a court would consider you keeping all of a £9000 advance payment to be either fair or reasonable if you only provided part of the contracted services - unless, that is, you could demonstrate to the court either that you had incurred £9000 of costs or losses because of the cancellation. Only you know if you can do that.

4. You might want to look at this from the point of view of the consumer Cancelling goods or services - GOV.UK (www.gov.uk) and from a business Unfair contract terms: CMA37 - GOV.UK (www.gov.uk)

5. As regards what you tell the insurers - I think you should tell them exactly what happened. ie (a) what service you contrcated to provide, (b) what you did provide, (c) that it was your clients and not you who cancelled the rest of the contract, (d) that the clients cancelled was not your responsibility.

6. You are a business. Do you not have any insurance to cover this eventuality?

7. You are a business. If I personally were getting sued for £9000 I'd get paid for legal advice - I wouldn't rely on an internet forum. You can increase your fees to cover legal costs.

[peeta]

thanks for the answers and sorry for early confusion.

pre-shoot was part of wedding pkg. hence I said 'wedding' taken place. To be clear, only preshoot, not wedding took place.

Thanks Manxman for the thought points.

what I like to know is,

- the fact that no written contract does not impact here right? even verbal contracts are binding ?
- we can still offer the customer postponed dates or vouchers, it is the full cash refund is not possible as per our policy.
- what abt venue going into administration, what roles doe it play in this ?

I will get professional help if it gets serious..even if it is it is going to be small claims procedure?

[peeta]

thanks atticus for reply and so for the confusion, yes, part of the contract (albeit not written like a normal one, only quotes, email exchanges and whatsapp) has definitely been delivered.

So, I would like to know where the law stands on a partially delivered unwritten contract which does not have any explicit cancellation clause.

can only part of a service contract can be cancelled by one party in such manner?

The fact that the client previously agreed for no full refund but postponement as a result of which we did not take new clients during a busy period, warrants business to keep some of the money to cover for loss of income?

also does service businesses always have to give the money back and can they not give other 'alternate option's such as vouchers? what does the law say on this in the UK anyone?

Thanks

[atticus]

I think you are going to have to negotiate an appropriate refund, allowing for compensation for what you have actually done.

That said, if you are a member of a trade association, you might contact them for advice - and if nothing else for their recommended terms of business for wedding photographers, which you can use going forward.