Refund Claim for Contract Termination of Wedding Photoshoot 게시글 상세보기 - 등록일, 조회수, 첨부파일, 상세내용, 이전글, 다음글 제공
Refund Claim for Contract Termination of Wedding Photoshoot
Date
2024-12-17
Hit
163
A. On December 14, 2021, the Claimant and the Respondent entered into a service contract (“Contract”) for a wedding photoshoot (scheduled for August 6, 2022, p.m. 12:00, with a total of KRW 3,500,000 as service fee). The Claimant paid KRW 1,000,000 to the Respondent as down payment (deposit).
B. On February 18, 2022, the Claimant canceled the Contract for personal reasons and demanded a refund of the deposit under the relevant regulations. The Respondent responded that refund was not available, as the Respondent had already announced, because seven days had passed since the Contract was signed.
A. Claimant’s AllegationThe Claimant demands a refund of the down payment as per the relevant regulations since the Claimant requested the termination of the Contract with more than five months left until the scheduled shooting day.
B. Respondent’s AllegationThe Respondent asserts that the refund is unavailable because seven days have passed from the Effective Day as stipulated in the Terms and Conditions of the Contract, and an opportunity cost was incurred as the Respondent did not accept bookings from other customers due to the Contract entered into with the Claimant.
A. The Claimant expressed intention to terminate the Contract 67 days after the date of signing and 170 days before the scheduled shooting day. There is no fault on the Respondent for the termination of the Contract, and the Respondent has likely suffered some losses due to the termination. Therefore, the Claimant is liable to pay the Respondent a penalty equivalent to the losses.
B. It is difficult to determine clearly the actual losses as the Respondent did not file evidence to support sufficiently the Respondent's claim on damages due to the Claimant’s termination. The down payment of KRW 1,000,000 was equivalent to 28.6% of the service fee. The Claimant signified intention to withdraw 170 days before the scheduled shooting day. The Respondent alleges that the Respondent incurred an opportunity cost as the Respondent could not accept reservations from other customers on the scheduled day; however, the Respondent should bear these costs to a certain extent given the nature of the Respondent's business. The Claimant did not receive any photography-related services. Therefore, the Respondent is not likely to suffer much damage due to the termination, but according to the Terms and Conditions of the Contract, any deposit is non-recoverable and non-refundable if customers want to cancel bookings after seven days have passed from the date of signing, regardless of whether or not withdrawal is unavoidable. The Respondent will keep 100% of the deposit without any exceptions for exceptional circumstances.
C. Based on the facts above, we conclude that the Terms and Conditions of the Contract impose an unreasonably disproportionate liability on customers for the actual losses suffered by the Respondent, so they are invalid pursuant to Article 8 of the Act on the Regulation of Terms and Conditions. Therefore, the Respondent may not refuse to refund the down payment.
D. There is no separate agreement between parties on limiting a penalty and a refund. We will determine the amount of deposit that should be refunded as stipulated in the Criteria for the Settlement of Consumer Disputes announced by the Korea Fair Trade Commission, under Article 16 of the Framework Act on Consumers and Article 8(3) of its Enforcement Decree.
E. According to the Criteria, the consumer shall bear 10% of the total service fee if the contract is terminated before the shooting starts for reasons attributable to him/her in the case of commemorative photos taken more than once. It is reasonable for the Claimant to bear KRW 350,000, which is equivalent to 10% of the service fee (KRW 3,500,000); thus, the Respondent should refund KRW 650,000 to the Claimant, less KRW 350,0000 from the paid deposit of KRW 1,000,000.
The Claimant shall be awarded KRW 650,000 by January 9, 2023.
(Applicable Laws: Act on the Regulation of Terms and Conditions, Article 8; Framework Act on Consumers, Article 16; Enforcement Decree of the Framework Act on Consumers, Article 8; Criteria for the Settlement of Consumer Disputes (Photography & Photo Developing Industry); Commercial Act, Article 54)
