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  1. #1
    Join Date
    May 2013
    Posts
    1

    Default Cancellation of a Contract - Refund, or More Money Owed

    My question involves business law in the state of: Nevada/California

    Hello, I have a business that operates in CA and I was negotiating with a business based in Las Vegas, Nevada. I manage artists and was booking a venue in Las Vegas for a concert. The representative of the venue was overall unprofessional and informal and provided me with a contract that had tons of errors in it. I personally retyped the contract to include provisions that were relevant. The contract outlined a $1,500 deposit, with $500 to be paid at execution of the contract and $1,000 to be paid 10 days before the concert. I asked the rep to send me the contract signed so that I could sign as well and have an executed contract. However he insisted that I needed to send the deposit, via a direct cash deposit at his bank before sending me the contract. We went back and forth a lot and finally my partner deposited the money because we had already began to promote the event and he was threatening to pull out. Based on his word I began to advertise the concert with his location before the contract was signed by both parties. After I sent the deposit he sent me the contract signed. I never signed it back because I was planning on going to Vegas in a couple of days. Once I drove to Vegas and saw the location it was not what I expected. We had agreed to 700 people but the space is very small and I highly doubt 700 people can fit there per the fire marshal. I also don't think the club has a license to do live events. I told the club I was no longer interested in doing business with them based on misrepresentation. They say that they have texts and emails confirming my intention to do business with them and that their lawyers advised them that they are able to come after me for the full amount of the contract, including the remaining $1,000 deposit requirement. Please let me know if you have any insight on my rights in this matter. Should I report them to the Better Business Bureau? Thank you!

  2. #2
    Join Date
    Feb 2010
    Location
    CT & IL
    Posts
    5,273

    Default Re: Who Owes Who

    you sent him the $500 agreed upon in the contract .. this may be seen as being an acceptance of the contract even if you did not sign it.

    The ? to answer: was their a meeting of the minds? Since you sent $500 and they signed the contract I would say yes. You both performed an affirmative act .. and YOU wrote the contract so its going to be hard to argue against its conditions.

    But my answer is a general one of contracts ... these are facts and contract wording specific ... you may seek out a lawyer but it will cost you more than 1.5K in legal fees and your claim is that you have no contract so this $$ legal fees would be down the drain.

    I would do what the contract says but in accordance with any fire code restrictions (a contract cannot violate that - I'm sure you know this).

    And don't do business again with these folks. Live and learn.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Cancellation of a Contract - Refund, or More Money Owed

    Quote Quoting jrojas
    View Post
    I asked the rep to send me the contract signed so that I could sign as well and have an executed contract. However he insisted that I needed to send the deposit, via a direct cash deposit at his bank before sending me the contract. We went back and forth a lot and finally my partner deposited the money because we had already began to promote the event and he was threatening to pull out.
    So... you drafted a contract spelling out the terms that were acceptable to you, sent it to him, and paid a $500 deposit. Should we infer that the contract explicitly states that the premises are being leased for a live event, and that the premises must be able to hold not less than 700 people for the event?
    Quote Quoting jrojas
    Based on his word I began to advertise the concert with his location before the contract was signed by both parties. After I sent the deposit he sent me the contract signed.
    So... he accepted the terms of the contract you drafted, and signed and returned that contract to you?
    Quote Quoting jrojas
    Once I drove to Vegas and saw the location it was not what I expected. We had agreed to 700 people but the space is very small and I highly doubt 700 people can fit there per the fire marshal.
    If the contract says "The premises must hold 700 people", the question of whether or not the premises can hold 700 people is pretty easy to answer: The location would have a permit that defines how many people can be simultaneously present. There may even be a "maximum occupancy" notice posted on a wall. Pursuant to its permit, how many people can be present at the same time? No guessing - give the actual number.
    Quote Quoting jrojas
    I also don't think the club has a license to do live events.
    And when you investigated what licenses the club actually holds, what did you find out?
    Quote Quoting jrojas
    I told the club I was no longer interested in doing business with them based on misrepresentation.
    So far you haven't actually told us of any misrepresentation. You have told us about your assumptions about what the premises would be like, having agreed to lease them without performing due diligence, and your impression that they might not be authorized for a 700 person live event - but whether or not they are properly licensed for your event is a matter of fact. You can and should find that out.

    Find out, and get back to us.

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