We will divide the points according to the following criteria:
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Events cancelled at the government’s directive;
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Events whose date falls in the coming month;
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Events whose date falls in the months of June through August and onward.
Events cancelled at the government’s directive
Couples who were supposed to hold an event during the coronavirus crisis, and whose holding the Government of Israel prohibited, this led the parties to frustration of the contract, and they must act in accordance with what is set out in the contract.
There are contracts that provided that the advance-payment monies would be returned to the customers and each party would be released from the contract without any penalties or compensation.
Other contracts provided that the parties must try to coordinate an alternative date, subject to the parties’ limitations (the possibility of postponing the event; an available slot in the event hall’s calendar and so on).
Further contracts provided that even if an event of force majeure occurs, the customers’ monies would not be returned. Anyone who received a contract that includes a one-sided stipulation in favor of an event hall may certainly challenge the contract on the ground that this is an unfair term in a standard contract, and bring about its cancellation.
At this point it is important to emphasize that there is a legal obligation on both parties to perform the contract in good faith and to show maximum flexibility in order to perform the contract, as far as possible. The source of the obligation is Section 39 of the Contracts Law, General Part.
Events whose date falls in the coming month
Couples who are supposed to hold the event in the coming month, and who have not managed to prepare for the wedding and even fear that the invitees will not attend the event at all, and the elderly in particular, may certainly demand the cancellation/postponement of holding the event.
The recommendation for these couples is to try to change the date of holding the event by agreement with the event hall.
Assuming the event hall refuses to cooperate, and demands large sums of money for moving the date, this conduct may certainly lead to a claim against the event hall on the part of the customers.
Later in the article we will address points relevant to all couples.
Events whose date falls in the months of June through August and onward
Since notices have already been circulated in the media that the coronavirus will strike with greater force next winter, the recommendation is to prepare already now for what is to come, to open the contract to negotiation and to prepare for any scenario that may occur.
These couples have “gained” precious time in which they must learn from recent events and from the mistakes made so far, and improve their contractual positions as far as possible — which means: reducing the number of invitees; cancelling the event; and, above all, considering the possible scenarios and writing them out explicitly as an appendix to the contract.
Contract points
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Cancellation fees — since most contracts relate to the time remaining until the event is held, it is advisable to adjust the cancellation fees and reduce them to the lowest possible amount.
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Alternative date — it should be established that setting an alternative date is subject to the customers’ wishes, and as long as the available dates of the event hall do not accord with the customers’ wishes, they may cancel the event without penalties or compensation.
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Restrictions — if the restrictions continue on a broad or limited scale, a compensation mechanism should be established for the event hall in the event that you wish to cancel. In addition, a mechanism should be established whereby a restriction of X percent of the number of invitees will constitute grounds for cancellation by agreement.
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Commitment to a number of meals — here too a mechanism should be established that permits the customers to reduce the number of invitees, without adding further money for each meal, if and when they wish to do so.
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Lack of response from the hall — if the event hall does not provide a contact person on its behalf who will supply an adequate response within a number of hours/days and so on, this may lead to the cancellation of the event on the part of the customers.
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Securing the customers’ monies — there is a concern that event halls will cease operating and that the advance-payment monies will not be returned to the customers. At this point it is important to secure the money by obtaining a bank guarantee for the customers’ monies and/or obtaining a personal guarantee from an external party. In most cases these are limited-liability companies, and as most of you know, the liability of shareholders is limited and this matter must be taken into account.
