Full question:
My company is a travel agency, which has many exclusive rooms of hotels. Due to the bad economic situation, we want to release the exclusive rooms to the hotels. But we may have to pay a penalty. Should we pay the penalty or is it possible to reduce the penalty?
- Category: Contracts
- Subcategory: Breach of Contract
- Date:
- State: Hawaii
Answer:
The relationship between your travel agency and the hotels is likely governed by a contract. The contract's terms will outline your rights and obligations regarding any penalties for releasing exclusive rooms. You may be able to negotiate a lower penalty due to economic hardship.
Contracts are legally enforceable agreements that establish the rights and duties of the parties involved. If your contract is written, it generally provides a longer period to sue for breach compared to an oral contract. Breaching a contract occurs when one party fails to fulfill their obligations, causing the other party economic harm.
Remedies for breach of contract include money damages, restitution, rescission, reformation, and specific performance. Money damages compensate for financial losses, while restitution aims to return the injured party to their pre-contract position. Rescission cancels the contract, and reformation allows the court to modify the contract to correct inequities. Specific performance compels a party to fulfill their contractual duties when monetary damages are insufficient.
Consider reviewing your contract closely and consulting with a legal professional to explore your options regarding the penalty.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.