📋 Overview
You have received a demand letter from a client seeking return of their wedding venue deposit. These demands typically arise after the client cancels their event and disputes your retention of the deposit under your cancellation policy. As a venue, your primary defenses are your signed contract terms, documented cancellation policies, and evidence of actual damages from the lost booking.
🕒 Respond Professionally
Acknowledge receipt within 5-7 days. A timely, professional response protects your reputation and legal position.
📄 Contract Is Key
Your venue contract with clear cancellation terms and deposit policies is your strongest defense.
📈 Document Damages
Show actual damages: lost booking revenue, staff time, rebooking efforts, and the date's market value.
Common Venue Deposit Claim Types
- Client-initiated cancellation - Client cancelled and wants deposit back despite policy
- Force majeure disputes - Client claims COVID, weather, or emergency excuses cancellation
- Date change disputes - Client wants deposit applied to new date or refunded
- Venue condition claims - Client alleges venue issues justified their cancellation
- Penalty vs. liquidated damages - Client claims deposit is unenforceable penalty
- Disclosure disputes - Client claims cancellation terms were not clearly disclosed
Attorney Services Pricing
- 📄 Response letter: Flat fee $450
- ⏱ Extended negotiation: $240/hr
- 📊 Litigation defense: Hourly or flat fee
🔍 Evaluate the Claim
Before responding, assess the validity of the refund demand and your contract's enforceability. Many deposit disputes can be resolved by pointing to clear contract language.
Claim Risk Assessment
| Scenario |
Typical Outcome |
Defense Strength |
| Client cancelled, clear contract terms |
Venue retains deposit per policy |
STRONG |
| Force majeure event (venue unaffected) |
Depends on contract language |
MODERATE |
| Force majeure (venue closed/unavailable) |
Refund may be required |
WEAK |
| Deposit exceeds 50% of total contract |
May face penalty argument |
MODERATE |
| Cancellation policy not signed/initialed |
Enforcement challenges |
MODERATE |
| Date was successfully rebooked |
Mitigation may reduce retention |
MODERATE |
📄 Contract Review
- ✓Cancellation policy clearly stated
- ✓Non-refundable deposit defined
- ✓Force majeure clause reviewed
- ✓Client signature/initials on policy
📈 Damages Documentation
- ✓Lost booking revenue calculated
- ✓Rebooking efforts documented
- ✓Staff/admin time recorded
- ✓Comparable booking values shown
⚠ Liquidated Damages Analysis
Courts may not enforce deposit retention that looks like a penalty rather than reasonable liquidated damages. Your deposit should be proportional to actual damages that would be difficult to calculate at contract signing. Document why the deposit amount was reasonable.
🛡 Your Defenses
Wedding venues have strong contractual defenses when clients cancel and demand deposit refunds.
Enforceable Cancellation Policy
Your contract includes a clear cancellation policy that the client signed and acknowledged. The policy was disclosed before signing, and the client had the opportunity to review terms and ask questions.
When to use: Client cancelled and the contract clearly states the deposit is non-refundable or forfeited upon cancellation.
Liquidated Damages Provision
The deposit represents a reasonable pre-estimate of damages that would be difficult to calculate at contract signing. Venue bookings involve holding dates, declining other inquiries, and preparing for specific events.
When to use: Client claims the deposit is an unenforceable penalty; show the deposit is reasonable compared to actual damages.
Actual Damages Documentation
Even without explicit liquidated damages terms, you can retain deposits to cover actual damages: lost revenue from the date, staff time invested, vendor coordination, and inability to rebook.
When to use: When you need to demonstrate the deposit covers real losses, not just a windfall.
Force Majeure Inapplicable
Force majeure excuses performance only when performance becomes truly impossible. If your venue was available and operational, the client's personal circumstances do not trigger force majeure protections.
When to use: Client claims COVID, weather concerns, or personal issues excused their cancellation, but your venue could have hosted the event.
Client Acknowledgment
The client specifically acknowledged and initialed the cancellation policy, demonstrating informed consent to the terms. Any claims of surprise or non-disclosure are refuted by the signed documents.
When to use: Client claims they did not understand or were not told about the cancellation policy.
Mitigation Efforts
You made reasonable efforts to rebook the date but were unsuccessful, or the replacement booking was at a lower value. Document all rebooking attempts to show good faith.
When to use: Client argues you should refund because you could have booked someone else; show your mitigation efforts.
🚨 Situations Requiring Caution
- Venue was closed or unavailable on the event date
- Deposit exceeds 50% of total contract value
- Cancellation policy was not clearly disclosed
- You successfully rebooked the date at equal or higher value
- Force majeure clause covers client's reason for cancelling
⚖ Response Options
Choose your response strategy based on contract strength and business considerations.
Enforce Contract Terms
If your contract is clear and the client cancelled voluntarily, deny the refund request with a professional letter citing specific contract provisions.
- Quote exact contract language
- Reference client's signature
- Document damages if needed
Partial Accommodation
Offer a compromise: credit toward future booking, partial refund, or date transfer to maintain goodwill while protecting your position.
- Preserves client relationship
- Avoids litigation costs
- Demonstrates good faith
Offer Date Credit
Allow the client to apply the deposit to a future event within a specified timeframe, rather than providing a cash refund.
- Retains the revenue
- Client gets value
- Potential future booking
Negotiate Settlement
If the claim has some merit or litigation risk is high, negotiate a mutually acceptable resolution with a release of claims.
- Quick resolution
- Certainty over litigation
- NDA available
📊 Deposit Retention Analysis
Example: $15,000 deposit on $30,000 venue contract
Deposit amount$15,000
Lost revenue (date not rebooked)$30,000
Staff planning time invested20+ hours
Declined other inquiries for date3-5 inquiries
Legal defense if sued$3,000-8,000
RETENTION JUSTIFIED:Deposit < Damages
📝 Sample Responses
Customize these response templates for your situation.
RE: Your Letter Dated [DATE] Regarding [EVENT DATE] Deposit
We have reviewed your demand for return of the $[AMOUNT] deposit for the wedding reception originally scheduled for [DATE] at [VENUE NAME].
We respectfully decline your refund request. The Venue Rental Agreement you signed on [DATE] contains the following cancellation provision at Section [X]:
"[Quote cancellation policy, e.g., "In the event of cancellation by Client, the deposit shall be retained by Venue as liquidated damages and not as a penalty. Client acknowledges that Venue's actual damages from cancellation are difficult to calculate and that this amount represents a reasonable pre-estimate of such damages."]"
You initialed this provision on page [X], confirming your understanding and agreement to these terms.
You notified us of your cancellation on [DATE], which was [X] days before your scheduled event. Per the Agreement terms, the deposit is non-refundable.
We understand cancelling your wedding was a difficult decision. However, our contract terms exist because venue cancellations cause real damages: we held your date exclusively, declined other inquiries, and invested staff time in planning your event. Despite our efforts, we were unable to rebook [DATE].
The deposit retention is consistent with our Agreement and applicable law. We consider this matter closed.
RE: [CLIENT NAME] Deposit - Accommodation Offer
We received your request for return of the $[AMOUNT] deposit for the cancelled [DATE] event.
While our Venue Agreement clearly provides that deposits are non-refundable upon cancellation, we understand that circumstances sometimes arise unexpectedly. We value our clients and want to find a fair resolution.
We are prepared to offer the following accommodation:
- Your deposit of $[AMOUNT] will be held as a credit toward a future event at [VENUE NAME]
- This credit may be applied to any booking within [18/24] months of today's date
- The credit is transferable to immediate family members for their events
This offer maintains the value of your deposit while giving you flexibility to use our venue for a future celebration.
Alternatively, if you do not anticipate a future event, we would consider a partial refund of $[AMOUNT - representing X%], with the remainder retained per our Agreement to cover our actual damages and lost booking opportunity.
Please confirm which option you prefer within 14 days.
RE: Deposit Refund Request - Force Majeure Claim
We have reviewed your letter requesting a refund based on force majeure due to [stated reason: COVID concerns, travel restrictions, etc.].
While we understand the circumstances that led to your decision to cancel, force majeure does not apply to excuse your cancellation obligation. Our venue was fully operational and available on [DATE]. We were ready and able to host your event as contracted.
Section [X] of our Agreement provides that force majeure excuses performance only when "[quote force majeure clause]." This provision applies when performance becomes impossible due to circumstances beyond either party's control - not when a party chooses to cancel for personal reasons or preferences.
On your event date, [VENUE NAME] was open, compliant with all applicable regulations, and prepared to host your wedding. Your decision to cancel, while understandable, was a voluntary choice rather than an impossibility of performance.
Accordingly, the cancellation policy in Section [X] applies. The deposit is retained per the agreed terms.
We remain willing to discuss a date credit as a gesture of goodwill, but a cash refund is not available under these circumstances.
RE: [CLIENT NAME] - Settlement Proposal
We have given careful consideration to your request for a deposit refund regarding the [DATE] event.
While we maintain that our Agreement terms are enforceable and the deposit was properly retained, we recognize that continued dispute is not in either party's interest.
In the spirit of resolution, we propose the following settlement:
- [VENUE NAME] will refund $[AMOUNT], representing [X%] of the original deposit
- [VENUE NAME] will retain $[AMOUNT] to cover documented costs and lost booking opportunity
- Both parties will execute a mutual release of all claims
- [Optional: Neither party will post negative reviews or public comments about this matter]
This proposal represents a significant accommodation on our part. Our costs from this cancellation include [staff time, declined inquiries, marketing costs, etc.], which exceed the amount we propose to retain.
This offer expires in 14 days. If accepted, we will prepare a short settlement agreement and process the refund within 10 business days of execution.
Please confirm your acceptance or provide a counter-proposal.
🚀 Next Steps
After receiving a deposit refund demand, take these actions.
Step 1: Review Contract
Locate the signed agreement and confirm cancellation policy language and client acknowledgment.
Step 2: Document Damages
Calculate lost revenue, staff time, declined bookings, and rebooking efforts.
Step 3: Assess Rebooking
Determine if the date was or could be rebooked and at what value.
Step 4: Respond Professionally
Send written response within 10-14 days citing contract terms and your position.
Protecting Future Bookings
- Clear contract language - Ensure cancellation policies are prominently stated
- Separate signature/initials - Have clients specifically acknowledge cancellation terms
- Reasonable deposit amounts - Keep deposits proportional to anticipated damages
- Document declined inquiries - Track other bookings you turned away for held dates
Get Professional Help
Venue deposit disputes require careful contract analysis. Get a professional response on attorney letterhead.
Schedule Consultation - $450
Related Resources