Canceling Restaurant/Banquet Bookings: A Guide to Legal and Amicable Resolutions

1. Cancellation due to objective reasons (natural disasters, weather, pandemics...)

According to Article 351 of the 2015 Civil Code (Vietnam), a party breaching an obligation is not subject to civil liability if the inability to perform the obligation is due to a force majeure event. Specifically, Article 156 of this Code explains: A force majeure event is an event that occurs objectively, is unforeseeable, and cannot be overcome despite applying all necessary measures within one's capability.

Applying this to banquet bookings, if severe storms, floods, widespread power outages, or government-issued bans on gatherings or lockdowns due to a pandemic make it impossible for the restaurant to operate or for guests to travel, this constitutes a force majeure event. In such cases, neither party is liable for the failure to perform the contract.

The reasonable solution in this situation is for both parties to negotiate postponing the event to another time, or to refund the deposit if significant preparation costs have not yet been incurred. If the restaurant has already purchased ingredients, prepared decorations, or scheduled staff, they may retain a reasonable portion of the deposit to cover these costs. This solution is both lawful and humane, ensuring the risk is shared between the parties.

2. Cancellation due to subjective reasons (change of plans, internal family disagreements...)

Unlike force majeure, if the cancellation stems from the customer's side—such as changing their mind, changing the venue, postponing a wedding, or internal family disagreements—these are considered subjective reasons. According to Article 513 of the 2015 Civil Code, a banquet booking contract is considered a service contract, where one party (the restaurant) performs work at the request of the other party (the customer) and receives remuneration.

When a customer makes a booking and pays a deposit, a civil contract is established. If the customer arbitrarily cancels without a justifiable reason, it is considered a breach of contractual obligations. According to Article 328 of the 2015 Civil Code, if the party that paid the deposit refuses to conclude or perform the contract, the deposit belongs to the receiving party. Thus, the restaurant has the right to retain the deposit and is not required to refund it if the cancellation is the customer's fault.

However, if the customer provides early notice (e.g., 7–10 days before the event) and the restaurant has not yet incurred significant expenses, both parties can negotiate for the restaurant to retain only a small fee or hold the deposit for a future booking. Conversely, if the cancellation occurs very close to the event date, the restaurant may have already prepared all ingredients and scheduled staff; therefore, retaining the entire deposit or demanding compensation for costs already incurred is entirely reasonable.

3. Practical advice to avoid disputes

• First: When booking, establish a clear contract or booking form. It should detail the number of tables, the menu, the deposit amount, the cancellation deadline, and the refund policy. The more detailed the agreement, the easier it is to handle incidents.

• Second: Include a specific clause for force majeure events. Clearly define how to proceed in case of natural disasters, pandemics, or other objective incidents (e.g., postponement, changing the date, or refunding).

• Third: All communications and changes should be confirmed via text message, email, or in writing to serve as evidence if a dispute arises.

• Fourth: In all situations, both parties should prioritize negotiating in good faith. For the restaurant, maintaining its reputation and showing empathy is important. For the customer, reasonably sharing the actual costs incurred is a civilized and fair course of action.

4. Conclusion

The handling of a restaurant booking cancellation depends on whether the cause is objective or subjective. If it is due to a force majeure event like a natural disaster or pandemic, both parties should share the damages, postpone, or refund costs not yet incurred. If it is due to the customer's subjective reasons, the restaurant has the right to retain the deposit or demand reasonable compensation for expenses.

The most important factor is goodwill, respect, and mutual understanding between the two parties to reach a harmonious resolution that is both lawful (hợp lý) and amicable (hợp tình).

The information contained in this article is general and intended only to provide information on legal regulations. DB Legal will not be responsible for any use or application of this information for any business purpose. For in-depth advice on specific cases, please contact us.

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