Legal Definitions - guaranteed reservation

Guaranteed reservation is an agreement between a customer and a business to reserve something, like a hotel room or a vehicle. The customer pays for the reservation in advance, and the business holds the reservation for the customer.

If the business cannot provide the reservation when it's due, they must provide a similar one and pay for any damages caused by the breach of contract. If the reservation is unique, the customer may be entitled to monetary damages from the business.

For example, if a customer books the only hotel room on the edge of the Grand Canyon, and the business cannot provide it, they must refund the reservation and pay for any other damages caused by the breach of contract.

If a business frequently breaks guaranteed reservations or uses misleading practices, the consumer may have remedies under federal or state consumer protection laws.