Event Contracts and Policies Quiz

What type of contracts are not applicable in the hospitality industry?

Why should the agreement contain clear expectations of services provided?

What should be detailed in the contract regarding vendors?

Which subject area is not mentioned in the contract details?

What is the purpose of including a cancelation policy in the contract?

What does 'A PROMISE TO PERFORM' refer to in the contract?

What is the purpose of including 'A VALUABLE CONSIDERATION (RATES)' in the contract?

What does the termination clause provide legal protections for?

What does the indemnification clause protect the hotel from?

What does the attrition clause outline potential damages for?

What does 'double dipping' refer to in the context of event contracts and policies?

When are initial and rest of deposits due date and cancellation terms supposed to be stated in the contract?

What is a proforma invoice in the context of event contracts and policies?

What do deposit policies typically include?

What is an example of meeting rooms attrition policies based on?

Event Contracts and Policies Overview

Contracts should include clauses for payment schedule and deposits, cancellation terms, termination (force majeure) clause, indemnification clause, group rate, room blocks, and damages policy
Payment details, initial and rest of deposits due date, and cancellation terms should be clearly stated in the contract
The termination clause provides legal protections for cancellations due to reasons beyond control
The indemnification clause protects the hotel from legal action due to client negligence or damage
Attrition clause outlines potential damages or fees for not fulfilling minimum commitments
"Double dipping" is an activity done by hotels and customers, and planners can charge hotels "reverse attrition"
Example of cancellation policies includes specific percentages invoiced based on the proximity to the event date
Example of room attrition policies includes penalties based on reductions in the number of contracted room nights
Example of F&B attrition policies includes charges for cancellations affecting the expected attendees
Example of meeting rooms attrition policies includes penalties based on the proximity to the arrival date
Deposit policies include a first deposit of 15% on contract signature and subsequent deposits leading up to the event
Proforma invoice is issued to confirm the buyer’s intentions for the event and is a 'good faith' agreement with specific details and not a payment demand. It can be converted to a completed invoice if changes are requested.