Asked in Contracts for North Carolina

Q: Festival sponsor refuses to make full refund on payment from vendor when festival was rescheduled. Is this legal?

A vendor signed a contract and paid $200 for a booth at an upcoming festival. The date of the festival as specified in the contract was unilaterally changed by the festival sponsor due to inclement weather. Due to other commitments, the revised date was unacceptable to the vendor. When the vendor requested a refund, the sponsor decided to withhold some of the $200 booth rental fee paid by the vendor "to cover administrative costs". There is no language in the contract that covers natural disasters, acts of God, bad weather, etc., or any other language that addresses this situation. The sponsor insists that the amount withheld from the refund is "fair". Is this legal?

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1 Lawyer Answer

A: The terms of the written contract will govern what is allowed and what is not allowed. Also if the contract references any other guidelines, those additional terms would be incorporated into the contract. For instance if the contract references some general guidelines for the event, etc. The contract should also state what is an acceptable termination of the contract.

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