"Reservation Canceled 10 Months Before Wedding? No Refund"... Court Rules Wedding Hall Must Refund Full Deposit

[Financial News] A wedding hall that refused to refund a deposit to a customer who canceled their reservation about 10 months before the wedding, citing a 'special agreement,' has lost a civil lawsuit.
On the 23rd, the legal community reported that Nam Su-jin, a presiding judge at the Gwangju District Court, ruled in favor of the plaintiff in a lawsuit filed by Mr. A against Wedding Hall B for the return of the deposit.
Mr. A, who was scheduled to hold a wedding in September this year, signed a contract with Wedding Hall B to rent a banquet hall and paid a deposit of 1 million won.
However, about 10 months before the scheduled wedding date, on November 30 of last year, Mr. A notified Wedding Hall B of the intention to terminate the contract due to personal reasons.
Mr. A requested a refund of the deposit, but the company refused. Citing its own special agreement, the company claimed that the deadline for a banquet hall deposit refund was 'within seven days from the contract date,' and even if refunded within that period, a consultation fee of 300,000 won would be deducted.
The court determined that Mr. A’s right to cancel the contract should be protected, based on the Criteria for Settlement of Consumer Disputes by Item established under the Framework Act on Consumers and related laws.
According to these criteria, if notice is given more than 150 days before the scheduled wedding date, the deposit must be refunded to the consumer even if the consumer is at fault.
Accordingly, the court ordered Wedding Hall B to return the entire deposit of 1 million won received from Mr. A, along with 136 won in interest for the delay.
The court explained, "Given the nature of wedding hall contracts, consumers who sign contracts well in advance of the event date need their right to cancel protected," and added, "A special agreement allowing refunds only within seven days of the contract date is invalid under the Act on the Regulation of Terms and Conditions."
The court further stated, "The plaintiff expressed the intention to cancel the contract 10 months in advance," and ruled, "The defendant is obligated to restore the plaintiff’s deposit of 1 million won and pay statutory interest."
newssu@fnnews.com Kim Su-yeon Reporter