Understanding Obligations and Contracts in the Hospitality Industry

Obligations and Contracts in the Hospitality Industry

Introduction

Transactions drive market trade, with individuals, private companies, and public entities engaging in contracts and performing transactions. A market is essentially an exchange of relationships governed by rules. Most obligations in civil law stem from contracts, although some, like parental responsibilities, do not.

Key Concepts

Power and Parties

Individuals have the power to compel others to fulfill obligations (e.g., a hotel guest must pay for their stay). Every obligatory relationship involves two legal entities, not necessarily individuals.

Intuitu Personae

This refers to situations where a specific person's skills are required, such as a surgeon or a Michelin-star chef.

Obligation de Moyens vs. Obligation de Resultat

Obligation de Moyens: The debtor must make reasonable efforts to achieve the intended purpose.
Obligation de Resultat: The debtor is obligated to achieve a specific result.

Force Majeure

This common contract clause typically releases both parties from obligations in the event of unforeseen circumstances like war or strikes.

Fulfillment and Termination

Obligations are typically terminated through payment from the debtor to the creditor or by payment from a third party.

Breach of Obligation

Debtor's Perspective: Failure to comply with a duty.
Creditor's Perspective: Dissatisfaction.

The creditor is entitled to compensation for damages, which can include:

• Indemnization (Monetary Compensation)
• Replacement
• Compensation for Late Performance

Types of Non-Performance

• Pure Non-Performance: Complete failure to fulfill the obligation (e.g., a guest being unable to stay due to overbooking).
• Late Performance: Delay in fulfilling the obligation, impacting the guest's interests.
• Defective Performance: Failure to meet the agreed-upon terms.

Modified Obligations

Parties can modify obligations to a certain extent through mutual agreement, altering structural elements like intention and object.

Adhesion and Standard Contracts

These contracts have non-negotiable terms, leaving individuals with a 'take it or leave it' choice.

Essential Elements of a Contract

• Capacity to Contract
• Consent (Mutual Agreement, Offer and Acceptance)
• Object (Scope, Legality, Clarity, and Feasibility)
• Causa (Consideration, Genuine Intention)

Breach of Contract and Remedies

A breach of contract is synonymous with a breach of obligation. Either party can claim damages for the breach. Private autonomy allows for extending or reducing liability and compensation amounts, but limitations and exemptions must not be abusive.

Accommodation Agreements

The primary obligation in a hospitality contract is to provide a room and ensure peaceful use. These complex contracts can be divided into sub-contracts (e.g., lease of things, lease of services). Rooms should include basic amenities like water, light, and telephone access.

Tourist Considerations

Tourists, as consumers, should receive clear booking confirmations, cancellation policies, and explicit terms of use. Hotel managers can request advance payments.

Hotel Manager's Rights and Obligations

Hotels can refuse access to guests without bookings, those unable or unwilling to pay, individuals in an unfit state, or those with criminal records. Hotel managers are obligated to provide accommodation as advertised, ensure peaceful room use, grant requested services, and guarantee health, safety, and the integrity of belongings.

Liability

Hotel managers are generally not liable for accidents unless there was a known issue that was not communicated to the guest.