How a Food & Beverage Business Hired a Lawyer to Draft a Catering Services Agreement in North Carolina

If your caterer has stopped responding and missed key confirmations as your event approaches, you may be within your rights to cancel the agreement. Under contract law, when one party clearly fails to meet essential obligations, or shows signs they won’t follow through, the other party may be released from their responsibilities. When You Can Cancel 1. Material Breach. If your caterer isn’t communicating and you can’t finalize your menu or logistics, that’s more than a minor problem. It may qualify as a material breach—meaning they’ve failed to deliver something critical to the agreement. In catering, timing and communication are central. If they’re missing in action, you may have grounds to walk away. 2. Anticipatory Breach. If it appears your caterer isn’t going to show up—such as ignoring multiple follow-ups as your event nears—you don’t have to wait for them to officially back out. Their silence may count as an anticipatory breach, which allows you to end the contract and secure a replacement in advance. Review the Agreement Before taking action, read the contract closely. Pay attention to: • Termination clauses: Are there specific steps or notice rules you need to follow? • Cure periods: Do you have to give them a certain number of days to fix the issue? • Refund or cancellation policies: Do they address partial payments or deposits? • Force majeure clauses: These usually cover uncontrollable events like natural disasters, not a vendor’s failure to communicate. Your Next Steps • Keep detailed records Save emails, texts, and call logs, noting dates and unanswered messages. This creates a paper trail that supports your decision if challenged. • Send a demand for assurance Before canceling, send a written request asking them to confirm they’ll perform. Be specific about what they’ve failed to do, set a 24- to 48-hour deadline if the event is near, and state that if they don’t respond, you’ll treat it as repudiation. This process reflects the concept of “adequate assurance” under UCC § 2-609, often applied to service contracts. • Provide formal notice If they don’t respond, send a termination notice in writing. Refer to their lack of performance or failure to reply, and follow any notice requirements in the contract—such as sending it by certified mail. • Find a replacement You’re expected to minimize your losses, so line up another caterer as soon as possible. If the replacement costs more, you may be able to recover the difference, provided the cost is reasonable. Potential Remedies If termination is justified, you may be able to recover: • Deposits or payments already made • Additional costs from hiring a replacement caterer • Other foreseeable expenses, such as venue penalties or last-minute rental fees A Word of Caution Your ability to recover money depends heavily on the contract language. A “non-refundable deposit” clause may complicate refunds, though you can argue that keeping the deposit is unfair when the caterer failed to perform. If significant amounts are at stake, consult a lawyer. Outcomes depend on local law and the specifics of your agreement. If you need guidance, the attorneys at Contracts Counsel can help you review your contract and advise you on your next steps.

The short answer is: you’re probably liable for the fee. The longer answer is: it depends on a lot of variables. First, what does your agreement with the catering company say? Chances are, the catering company says that this type of thing isn’t their fault, and they held the dates for you. So the fee is due. Next, let’s start by acknowledging that it’s 2024 and not 2020. This is important because the timing is possibly important. If the venue closed during the pandemic, and all of this happened DURING the pandemic, you might have a force majeure argument. But if the venue closed in 2020 and the wedding was in 2024… and you failed to find a new venue in that time, then the fee is probably warranted. But overall, without more specifics, the answer is not determinable.