If you have been notified by the resort that they are going into administration, this is called an ‘anticipatory breach’.
An anticipatory breach, is a term in the law of contracts that describes a declaration by the promising party to a contract, that he or she does not intend to live up to his or her obligations under the contract.
By closing the hotel/resort, they are frustrating the terms of your contract as you are no longer able to exercise the rights provided to you. Because of this, on closure, there will be a breach in your contract. This means that you CAN terminate the contract free of charge.
What is a ‘breach of contract’?
Breach of contract is a legal cause of action in which a binding agreement or bargained-for exchange is not honored by one or more of the parties to the contract by non-performance or interference with the other party’s performance.
You may also be entitled to compensation if;
- You paid the initial deposit of over £100 on a credit card.
Or
- You made the purchase on a debit card less than 120 days ago
If you paid on a credit card and the purchase was over £100 but under £30,000 then your initial payment and all subsequent payments i.e. maintenance bills, are protected by Section 75 of the Consumer Credit Act 1974. In the event of a miss-selling or a breach of contract, you have the right to make a claim utilising Section 75.
If you paid on a debit card and the purchase was less than 120days ago, then you can make a claim for breach of contract under the ‘Chargeback scheme’. This is not a legal protection like Section 75 but, most banks will honour this process.
If you would like to know how to submit your termination or make a claim for compensation, please contact our office on the below details.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk