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Termination of agreement

Good evening.

we have a self catering flat above our restaurant. We are handing back the property to the landlord as we can no longer operate the restaurant. We have some bookings for the flat and the landlord wants us to cancel them.

It seems that we will have to compensate these bookings. Of course we have not received the income as they are future bookings.

Does anyone have any experience of this sort of problem or any info please?   

 Very many thanks.