Purpose
The purpose of this policy is to ensure that the liquidated damages provision our agreement is fair, reasonable, and enforceable, based on a genuine pre-estimate of potential damages incurred in the event of a cancellation.
Scope
This policy applies to our Inclusive Wedding Package Agreement
Definitions
- Liquidated Damages: A predetermined amount of money stipulated in the contract, agreed upon by the parties, to be paid as compensation in the event of a breach.
- Cancellation: The act of terminating the contract before the scheduled event.
Policy Statements
Reasonable Estimate of Damages
Calculation Basis: Liquidated damages are calculated based on a reasonable endeavor to estimate actual damages likely to be incurred from a cancellation. The calculation considers:
- Fixed costs (e.g., administrative expenses, staffing, facility maintenance).
- Variable costs (e.g., acquisition costs, concessions to re-book the date).
- Potential loss of revenue from the inability to rebook the venue.
Non-Arbitrary Amounts
Proportional Fees: The liquidated damages amount is proportional to the actual damages anticipated from a breach.
- More than 180 days before the event: Forfeiture of 50% of the total facility fee and full service wedding planning fee.
- Less than 180 days before the event: Forfeiture of 100% of the total contract value, including all wedding planning and facility fees, estimated per guest fees, and all anticipated room revenues.
Non-Punitive Nature of Liquidated Damages
Fair Estimate: The parties agree and acknowledge that the liquidated damages set forth in this policy are intended to represent a fair and reasonable estimate of the losses and damages that might reasonably be anticipated from a breach or cancellation of our Inclusive Wedding Package Agreement. These liquidated damages are not intended to serve as a penalty, but rather to compensate Chalet View Lodge for the time, effort, and resources expended in planning and reserving the event, as well as the potential loss of other business opportunities.
Consideration Factors: In determining the amount of liquidated damages, the parties have considered, among other factors:
- The costs incurred by Chalet View Lodge in preparing for the event.
- The potential loss of other business opportunities due to the reservation of the event date.
- Administrative and operational expenses associated with the planning and cancellation of events.
Acknowledgment: By agreeing to conduct your event in an orderly manner and in full compliance with all policies of the Lodge, as well as all applicable laws, ordinances, and regulations, both parties acknowledge and agree that the liquidated damages policy is included in the "full compliance with all policies of the Lodge." Furthermore, the liquidated damages amounts are a reasonable pre-estimate of the probable loss and do not constitute a penalty.