Event agreement; Deposit; Security
November 19, 2010 | 35,00 EUR | answered by Jan Wilking
Dear Sir or Madam,
We have signed an event agreement (see attachment) with a hotel for our wedding in May 2011, for the rental of the rooms and the execution of the event. We are now required to make a down payment of 2500,00€. The contract does not specify what security we have in case the organizer becomes insolvent or if the venue burns down, etc.
How can we secure our down payment in this situation? How does the law regulate such a case?
We would appreciate a prompt response from you.
Kind regards,
The tenants
Dear inquiring party,
I am happy to answer your inquiry taking into account the situation you have described and your commitment as follows:
Unfortunately, there is no legal protection in your specific case, such as in travel law (§ 651k BGB). A solution like in construction law, where the advance payment can be linked to the progress of the construction, is also not practical in your case. Also, credit insurance policies that companies take out for such cases do not play a role in private matters.
One way to secure your payment would be to deposit it into a trust account, as is legally regulated for rental deposits in residential space in § 551 BGB. However, the contracting party must agree to the settlement through a trust service and you would likely have to bear the costs for this.
However, it is rather unlikely that circumstances will arise by May 2011 that would "eliminate" your deposit. If the building were to burn down, you could claim back the deposit due to the impossibility of renting. The hotel will be insured against this, so under normal circumstances, insolvency will not occur as a result. Even in the event of bankruptcy, the hotel will not be immediately closed, but rather the business operations will continue as usual if possible.
If the hotel has made a good impression, I see a low risk here. However, in times of financial crises, there is always a certain risk, and since it is a considerable amount, you should definitely express your concerns to the hotel and inquire about alternatives, such as the aforementioned trust service.
I hope this information provides you with a helpful initial orientation. If you have any uncertainties, please use the free follow-up function.
Please note that in this initial consultation, without knowledge of all circumstances, I cannot provide a definitive advice. If you require a conclusive assessment of the situation, I recommend contacting a lawyer and discussing the situation with them after reviewing all relevant documents.
Sincerely,
Lawyer Jan Wilking
Tirpitzstr.21
26122 Oldenburg
