LEGAL OBLIGATIONS

Legal Obligations

Legal Obligations

Case 1

Hire is calculated on a calendar day basis, i.e. no matter what time the vehicle is picked up or dropped off, this is calculated as one day's hire. A rentcharge is any annual or other periodic sum charged on or issuing out of land, except (a) rent reserved by a lease or tenancy, or (b) any sum payable by way of interest (s1 of the Rentcharges Act 1977). Section 2 provides that no rentcharge may be created whether at law or in equity after coming into force of this section. However, a rentcharge created for the purpose of meeting, or contributing towards, the cost of performance of covenants for the provision of services, the carrying out of maintenance and repairs or the making of any payment .. for the benefit of land affected by the rentcharge is permitted so long as the sum is reasonable. All have to conform to certain legal requirements and more stringent legislation applies to hotels. Prices are governed by market forces and subject to seasonal variations. (Ashworth S. 2000 Pp. 77.)

Cancellation without consent or failure to arrive on the due date for whatever reason, including illness, will entitle the hotelier to claim compensation, as long as all reasonable steps have been taken to re-let the accommodation, subject to: no claim to be made until the original letting period has expired; and the claim excluding all cost of food not supplied, but including costs of re-letting. Normally a deposit is non-returnable. If the claim is for less than the deposit, the balance may be refunded. In practice, hoteliers may be reluctant to exercise their legal rights owing to the damaging effect on goodwill.

Usually guests are informed that a room will be held for a set time, In this way, the reservation ...