Ok.
Jay, first off, verbal contracts are binding. But offer, acceptance and the terms must be clearly agreed and understood by both parties, and both must agree and understand what will happen if the contract is breached. As it's verbal, it's often difficult to prove or disprove, often ends up in court. Any supporting evidence like emails, and receipts is taken into account.
Contract = Offer + Acceptance + intention to create a contract + Consideration (money)
If She was given this pack AFTER she paid the deposit, and was not taken through it's contents, Or explained the % of total cost for cancellation, then I would say that she can tell then to get lost.
I take it there was a formal written contract in this info pack. If this contained the terms of cancellation then it needs to be signed by both parties to be binding.
If however she was made aware, in clear unequivocal terms, that a % of the total cost will be paid on cancellation, then even if it was verbal, and witnessed, BEFORE SHE PAID THE DEPOSIT, then a court may find for the venue.
Here is some detail:
"In order to form a contract, the parties must agree on what either party will do under the terms of the contract; they must have the intention to form contractual relations; and there must be consideration.
It is immaterial whether the contract is verbal, in writing, or partially verbal and partially written, although common sense says that recording the agreement in writing creates a document that may be referred to for its terms in the event of a dispute between the parties. Obviously, this is particularly important when disputes arise in respect of the agreement, whether the dispute arises in respect to the work to be performed or sums to be paid under the agreement.
Both verbal contracts and written contracts are equally legally binding contracts, subject to the existence of the usual requirements for formation of a contract.
Certainty and Completeness of AgreementAgreement is reached between contracting parties when an offer is made by one party which is
clearly and unequivocally accepted by the other party. (Important here Jay, was she made clear on the T&C's and did she agree?)The offer must be sufficiently certain so as the parties know what is to be performed, and the agreement must be complete. An agreement is incomplete when an essential term has not been agreed or there are further matters to be agreed.
Agreements in principle are usually considered not to be complete, as are contracts expressly stated to be ‘subject to contract’. In deciding whether a contract is complete, a court will consider a contract to be formed when, from the viewpoint of an officious bystander, the parties have agreed in the same terms on the same subject matter.
Verbal ContractsThere is no legal impediment to the parties entering into a contract based on their conduct and verbal statements or representations. When parties agree the terms of the contract by verbal statements, the binding terms of the contract are more difficult to ascertain.
Usually a court will look to the history of the statements made by the parties and the performance of the parties to obtain assistance in determining what was actually agreed by the parties. Where one person however has not performed their part of the bargain, and court is left to more uncertain means in reaching a decision.
Draft contract documents, emails, letters and order forms may lend assistance to deciding the terms of a verbal agreement, and courts have used similar agreements with third parties to apply a standard of reasonableness in determining the terms of the contract in the absence of writing.
In the event that a party refuses to sign a contract, it is essential to write to the person and confirm the terms of the contract as they are understood, to provide a evidence at a later date as to the terms of the agreement reached.
In the absence of any other evidence these communications are may be key in assisting the resolution of disputes relating to the terms of the contract. It may be useful to know that where an verbal agreement has been reached, which is later confirmed in writing but the written document does not properly record the terms, that it may be rectified using the doctrine of rectification."
Though it best to include all that as it as a learning experience for all of you.
Jonathan.
