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A catering company got hired by client to cater private event. The client paid for private event in full days before the event. A receipt was given showing the
transaction, yet no formal contract was ever created. It was just a conversation via text. The catering company used part of payment to purchase the products for the event. Now, 3 days before the event is to take place, the client canceled and is requesting full refund. Are they entitled to any refund considering it’s so close to the event?
Asked on August 26, 2018 under Business Law, California
Answered 6 years ago | Contributor
No, they are not entitled to a refund. Oral, or unwritten, contracts are binding and enforceable, too, so long as there was clearly a "meeting of the minds," or agreement as to what was to be done, and an exchange of "consideration," which is things (like money) or promises (like of providing services, or of more money) of value. What you descirbe is a situation where there was an oral contract, since there was agreement that the client would hire the company to cater, and there was an exchange of consideration (money paid for services). Therefore, since there was a contract, both sides are held to it: as long as the catering company was ready and able to perform, the client had to pay and cannot get a refund.
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