What to do if we are a photography studio that is having issues with a customer that signed a contract and now has cancelled their event?

They have been verbally nasty to us. If a contract is signed and a deposit is required to hold a date for a service (photography) and the customer cancels the event on that day do the deposit and funds have to be refunded? The contract states that the customer signed the deposit and only 10% of the amount paid will be refunded is event is cancelled. We have turned down multiple other events due to them booking the date(which is valentines day). So we have lost the revenue besides the monies paid already for that date since they have canceled and the full balance has not been paid.

Asked on January 7, 2013 under Business Law, Texas

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

You have not lost revenue yet. Valentine's day has not yet happened so the issue of lost revenue really cannot be measured at this point; it may be measurable after the date. If your contract states you keep 90%, then that is what you keep as basically allowing it as an option contract. If the individual cancels, and you keep 90%, that is considered your profit. You can be free now to book the date with someone else but even if you did not, your 10% would be considered your cost and the 90% is your profit, to which you would be only entitled.


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