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HOTEL CONTRACT
This is the agreement with which the owner of an accommodation facility
commits to providing the customer, in exchange for the corresponding price,
a service of
accommodation in a furnished residential unit, as well as any
accessory services, some necessary and others ad hoc.
In Italy, a hotel contract is not regulated by law, which only regulates the hotel
owner’s responsibilities regarding the deposit of items that have been brought
or handed over to the hotel (articles 1783 to 1785 of the Italian Civil Code).
For all other matters, general regulations on obligations and contracts apply.
The principles and rules of the hotel contract
apply to all accommodation
facilities, irrespective of the terms used for the different types of facility
(hotel, resort, motel, camp site, mountain chalet, apartment, bed & breakfast,
beauty farm, etc.).
Booking and concluding the contract:
A booking is an agreement in which the hotel owner commits to making
accommodation and all connected services available to the customer.
Depending on whether or not it includes a deposit of a sum of money, a
booking has different contents and consequences.
- “simple” booking
At times, in order to reserve a room in a hotel, it is sufficient to call ahead,
agree on services and price and provide a name (and sometimes also a
telephone number).
This kind of booking, entirely verbal, and which does not allow the hotel
owner to trace us, creates obligations only for the hotel owner, who is
obligated to conclude the definitive contract.
The traveller, on the other hand, is free to make use of the booking or not.
Of course, it is a duty of appropriateness to notify in the event of
Cancellation:.
Also, as a document of the agreement, it is advisable to confirm the content
of said agreements via fax (arrival and departure date, price, any accessory
services, etc.), even if the hotel owner does not expressly request it. Receiving
a fax will give more peace of mind both to the hotel owner (who will be more
likely to give credibility to a written booking), and to the traveller (who will
have “proof” of their right). In the absence of written proof, there is nothing
we can do if there are no rooms left when we arrive at the hotel.
- a booking as “conclusion of the contract”
If, when making verbal agreements, the hotel owner requests to follow up by
sending a sum of money, whatever this might be called (down payment,
security deposit, advance), then the commitment is understood to be taken on
by both parties. In this case the obligation to compensate for damages arises
both in the event of a breach on behalf of the hotel owner (unavailability of
room), and on behalf of the customer (failure to show up at the hotel).
In general, a contract is perfected when whoever has made the proposal finds
out about the acceptance on behalf of the other party (art. 1326 Civil Code).
Now, managing a hotel is a constant offer of contracts aimed at the general
public. A booking in this second form (with an obligation on the part of the
customer, too) is an acceptance of the hotel owner’s offer. This determines not
only a simple preliminary agreement, but also the conclusion of the hotel
contract itself.
Liability for breach of contract:
- on the hotel owner’s side
Once the booking has been made and accepted, the hotel must ensure that the
accommodation is available. Failing that, he is obligated to compensate for
damages, according to general rules on obligations.
The easiest form of compensation, and the most useful also for the customer,
is “in kind”: the hotel owner who breaches the contract will have to try to find
the customer alternative accommodation, in the same place and on the same
level. Should that prove to be impossible, then the hotel owner is obligated to
pay a monetary compensation, which is quantifiable case by case.
- on the customer’s side
If the booking included the deposit of a sum of money, however it is referred
to, then the contract is to be considered perfected, with obligations on the part
of the customer too. In particular, the obligation that the customer has taken
on is to show up at the hotel and use the services they reserved. Failing that,
they will have to compensate the hotel owner for damages. These damages
will be quantified as the lost gain corresponding to the price of the rooms that
were reserved and not used, minus the price of any accessory services that
were not used.
Hotel owner’s obligations:
The hotel owner’s first obligation is to enter into a contract with anybody who
so requests, without exhibiting any
discriminatory behaviour.
Refusal is legitimate only in the event of unavailability of accommodation and
if the customer does not have the
correct documents for identification. The
hotel owner is obligated to keep a form containing the customer’s details and
submit a copy to the law enforcement authorities (art. 109 T.U. of public safety
laws)
Once the contract has been concluded, the hotel owner is obligated to provide
the customer with
a furnished residential unit, the use of
common areas and
all
services to which they are committed via catalogues, brochure or specific
agreements.
Compulsory services include
keeping the accommodation clean and tidy.
As far as prices are concerned, the hotel is obligated to inform the Region of
the minimum and maximum fares referring to the following season and post
these fares in a visible place within the building. There is no longer any
obligation to post the prices inside each room, unless specified by individual
regional law.
Customer’s obligations:
The customer is obligated to pay the charge; to leave any occupied rooms
within the established deadline; to use the structure in full respect of internal
regulations.
As far as payment is concerned, it is worth remembering that for credits to
customers, the hotel owner enjoys a privilege in regard to items brought into
the hotel, on which he or she can exercise a
right of lien that overrides any
rights claimed by third parties.
This credit, however,
has a six-month expiration limit (art. 2954 of the Civil
Code).
Duties regarding protection:
This term refers to the obligation, for the hotel owner, to guarantee
the
supervision, hygiene, cleanliness and safety of the areas in which the
service is provided, in full respect of current regulations. Customer safety and
security must, however, be guaranteed well beyond the formal respect for
regulations. For example, the hotel owner is considered responsible for any
damage suffered by the customer as a result of faulty lighting or lack of
handrails along the stairs; or for damage caused by a damaged floor; or even
for damage suffered by a customer who slips in a shower that does not have a
box, handles and shower mats. The hotel owner is exempted, totally or
partially, from this responsibility if the harmful event was caused by the
customer’s negligent behaviour or if negligence compounded it.
Responsibilities of the Hotel owner
regarding property brought into the hotel:
In the event of deterioration, destruction or loss of any items deposited in the
hotel, the hotel owner is responsible, and is obligated to compensate for any
damages. The customer must report the damage to the hotel owner without
delay.
The hotel owner’s responsibility for items deposited in the hotel is regulated
by articles 1783 and following of the Civil Code. The concept of deposit
includes both items that are “taken into the hotel” by the customer, and items
personally “handed over” to the hotel owner or another employee. Both cases,
however, have different consequences in terms of responsibility.
In the case of
things that are “taken” (and not “handed over”) there is an
“objective” responsibility (in other words, it is not necessary to prove the
hotel owner’s fault) yet
limited (compensation cannot be more than 100 times
the daily price of accommodation). The customer will have to prove the
existence of the hotel contract, the harmful event, its occurrence on the hotel
premises and the size of the damage.
Time limits: the hotel owner’s responsibility covers the period of duration of
the hotel contract and, also, a reasonable period of time before or after the
period in which the customer stays in the accommodation (for example, if
luggage was sent separately the day before the arrival; or if luggage is left in
the hotel for a few hours after leaving the accommodation).
Limits in space: the hotel owner’s responsibility applies to items that are on
the hotel premises, as well as outside the hotel for items that the hotel owner
or another employee is safeguarding (for example, during transportation from
place of arrival to the hotel if transport is organised by the hotel owner).
The hotel owner’s responsibility for “brought” items, which is usually
objective and limited, becomes subjective and unlimited if the owner’s fault
can be proven (negligence or incompetence), as is the case with doors that
have been left open, key rooms left without supervision, etc. In these cases, the
hotel owner must compensate the damages without limits in value.
Responsibilities of the Hotel owner
regarding property handed over for safekeeping:
For the deterioration, destruction or loss of any items handed over directly to
the hotel owner or another employee for safekeeping,
responsibility is
unlimited (art. 1784 of the Civil Code). In this case there is no maximum limit
to the compensation. If requested by the customer, the hotel owner is obligated
to take cash, cheques, credit cards and valuable objects for safekeeping. He or
she may only demand that the item handed over be contained in a closed and
sealed wrapper. If they refuse to take items that they are obligated to receive,
they will be responsible in an unlimited way. However, the hotel owner can
legitimately refuse to take excessively large or expensive items in relation to
the conditions of the hotel.
It is the customer’s responsibility to
prove that items are handed over. It is
therefore advisable to request a receipt that helps identify any items handed
over for safekeeping (more professional hotel owners will give one
immediately).
In the case of items placed in
safes made available to the customer with their
own personal key, the considerations for items “taken into the hotel” apply
(and not “handed over”): the hotel owner’s responsibility will therefore be
limited. If, however, the hotel owner has a second key to the safe, then the item
is considered handed over for safekeeping, with unlimited responsibility.
Vehicles:
The hotel owner’s responsibility does not extend to vehicles parked on hotel
property.
In order for it to be the hotel owner’s responsibility there needs to have been
a separate agreement that the hotel would look after the vehicle. In this case,
it is not sufficient to simply park the vehicle in an area that is property of the
hotel or even in the garage: the vehicle’s keys need to have been handed over
to the hotel and/or parking must be paid for.
Extension to areas other than the hotel:
Article 1786 of the Civil Code extends the application of regulations on
deposits in hotels to all structures that are somehow comparable, such as for
example: care facilities, seaside resorts, public entertainment venues, bed &
breakfasts, restaurants, sleeping cars and similar.
TIME SHARES:
Consumer Code and timeshare market:
On the subject of timeshares, Directive 94/47/CE has been applied in Italy in
Legislative Decree 9/11/1998 no. 427, the content of which was subsequently
transferred to articles 69 to 81 of the Consumer Code.
Among the more significant new regulations is the prohibition of calling
“timeshare” the purchase of the part-time right of use that is not accompanied
by a transfer of a real right on the property.
The Decree regulates:
- the right to information and the requisites of the contract
- the right of withdrawal without penalty within 10 days of stipulation (which
becomes 3 months if the contract does not contain one of the obligatory
items of information; 3 months + 10 days if the information is still not
communicated at a later date)
- the prohibition of advance, down payments and security deposits until the
expiry of the time limits for the withdrawal
- the obligation of a guarantee deposit from the seller guaranteeing completion
of construction work
- resolution by right of the loan agreement if the right of withdrawal is
Exercised
- the overriding regional authority of the judge in the place in which the
consumer resides
- the inalienable authority of the buyer’s rights, even when non-Italian law
Applies
- a system of sanctions to be paid by any seller who fails to meet the
obligations laid down in the decree
The timeshare market is still a maze in which it is easy to get lost: often the
selling company is connected to various parties so it is difficult to determine
the limits of responsibility: a managing company, a company for money
exchanges; a reference company for managing the ownership of the purchased
rights; a financing company for the credit. Add to that the fact that often parts
of these companies are based abroad (Virgin Islands, Central American
countries, etc).
The same prohibition of using the expression “timeshare” in the absence of the
establishment of a real right has caused a proliferation of clever but absolutely
obscure systems of “ownership certificates”, “points purchases” and similar.
All of this has contributed to creating a not particularly credible overall picture
of the market, which seems to be developing at a much slower pace than
expected.
If in the contract that is presented to us for undersigning the term “timeshare”
is used, then the contract needs to include the transfer over to us of a “real
right” (with a copy in the property registers, notary’s signature, etc.). If that is
not the case, then it is not a real timeshare, but just the purchase of a right of
use, a sort of tenancy with a different name to fool us.
Right of withdrawal:
Regardless of the place and methods of conclusion of the contract,
within 10
business days of signature of the contract it is possible to recess without
having to give any reasons (the so-called “right to second thought”).
In the event of withdrawal, no penalty is owed: the seller is only owed a refund
of the
documented expenses that were
necessary for the conclusion of the
contract (and only if it has been mentioned expressly in the contract and only
it they are expenses that cannot be postponed until after the time limit for
withdrawal has expired). Any clause that includes the payment of penalties or
the refund of expenses as a lump sum is not legitimate and should not be
considered proper.
The right of withdrawal is exercised with a
registered letter with a form for
acknowledgment of receipt to be sent to the seller, or to any other party that
might be mentioned in the text of the undersigned contract.
When the time limit of 10 business days is about to expire, a telegram or fax
can be sent by that deadline, followed up by a registered letter within 48 hours.
The contract must contain all the correct information on the right of
withdrawal (existence of the right, its content, terms and methods of its
exercise, party to whom to send the registered letter).
If the contract does not contain the correct information on the right of
withdrawal, and the information is given separately within the following 3
months, the limit of 10 days starts from the date of receiving the correct
information.
If the information on the right of withdrawal is not communicated even after
the conclusion of the contract, the right of withdrawal may be exercised within
3 months, and no refund is owed to the seller. In this case the withdrawal is
also allowed within the 10 days following expiry of the three months, but in
this case the seller will be owed the documented expenses mentioned in the
contract (as long as they are expenses that cannot be postponed).
Down payments and security deposits:
The seller may not demand or accept any sum of money as an advance, down
payment or security deposit before the period for exercising the right of
withdrawal has expired.
Therefore,
no sum of money is owed upon signing. Any request for money
is illegal and should make us seriously question the seller’s professionalism
and the quality of the deal.
Guarantees from the seller:
If the object of the contract is a
property that is yet to be completed, the
seller must provide a banking or insurance
guarantee stating that work will be
completed.
The seller must provide the same guarantee if they are not a corporate
enterprise, if they have a capital stock of less than euro 5,164,569 and if they
do not have their headquarters and secondary branches in Italy.
The guarantee does not include the obligation of advance payment to the seller
from the buyer.
Also, in cases in which the guarantee is obligatory,
it must be mentioned in
the contract. Failing that, the contract is null and void.
Purchase with financing:
Sometimes the purchase is accompanied by a financing contract.
If this financing is based on commercial agreements between the seller and the
financing party (a bank or, more often, a finance company), the authorization
of credit contract is resolved by right (and without any penalty being owed) as
an automatic consequence of the exercise of the right of withdrawal.
Whoever has correctly exercised the right of withdrawal may legitimately
interrupt the payment of installments to the financing company without the
company being able to request anything.
In this case, while not obligatory, it is nevertheless advisable to send the
financing company a carbon copy of the registered letter of withdrawal sent to
the seller.
Void clauses:
Any contract clauses including the following are illegal and should be
considered void:
- the buyer’s renouncement of the rights described in articles 69 to 81 of the
Consumer Code (for example, renouncing the right of withdrawal)
- limitations in the seller’s responsibility
- in the event of controversies, the regional jurisdiction of a judge other then
the one in the area in which the buyer resides
DECALOGUE OF THE AWARE TOURISTS:
“All-in package holidays”:
- Compare prices, but also services
- Read the contract and keep a copy of it
- The catalogue is an integral part of the contract
- Bad service: complain on the spot: the local representative of the tour
operator can help you solve the problem
- If the problem persists, obtain proof (photos and witness accounts): you can
contest the bad service within 10 days after returning home
Air travel:
- Discounted fares: same level of safety, but fewer services: find out and make
an educated choice
- No room on flight (“overbooking”) and flight cancellation: immediate
compensation (between 250 and 600 € depending on the type of flight) and
assistance (telephone call or fax, food and accommodation) during the wait
to board another aircraft
- Mislaid luggage: go to the lost and found office in the airport
- Lost luggage: compensation within predetermined limits
- Valuable luggage: declare them at check-in: for a supplement, the declared
value will be ensured
Timeshares:
- Before signing, check the contract or have it checked by an expert you trust:
if the seller does not give you time, it’s best not to sign
- Right of withdrawal within 10 days of signing without penalty: check the
date on the contract before signing
- Down payments and security deposits: do not pay anything when you sign,
and also not before expiration of the limit for withdrawal