1. The Client's Situation
In the process of concluding a contract with a reservation-platform operator, the client requested advice because it needed to review who would bear the costs arising from refunds and cancellations, as well as the contract term and automatic-renewal conditions. There was a concern that the draft contract excessively set the scope of the platform operator's liability, so the risk-allocation structure needed to be adjusted.
2. Your Legal Team's Advice
Your Legal Team first proposed a direction that clearly distinguished each party's area of liability with respect to refund and cancellation costs. We divided and reasonably allocated liability among the client's fault, the platform operator's system errors, and the accommodation's fault, and in particular prepared a revised proposal so that the operator would not bear the accommodation's fault. In addition, since the contract term was structured to renew automatically at fixed intervals, we advised on the management point that an intention to terminate must be given in writing in advance.
3. Result
The client was able to prevent an excessive liability burden and secure an advantageous position in negotiations with the platform operator. This allowed it to establish a reasonable contract structure and to minimize unnecessary legal risk in the future renewal process.