15 Questions
What type of contracts are not applicable in the hospitality industry?
Oral contracts
Why should the agreement contain clear expectations of services provided?
To avoid misunderstandings
What should be detailed in the contract regarding vendors?
Certified vendors and the services they provide
Which subject area is not mentioned in the contract details?
Number of guests invited
What is the purpose of including a cancelation policy in the contract?
To outline consequences of cancelation
What does 'A PROMISE TO PERFORM' refer to in the contract?
Commitment to provide services
What is the purpose of including 'A VALUABLE CONSIDERATION (RATES)' in the contract?
To define the agreed-upon payment for services
What does the termination clause provide legal protections for?
Cancellations due to reasons beyond control
What does the indemnification clause protect the hotel from?
Legal action due to client negligence or damage
What does the attrition clause outline potential damages for?
Not fulfilling minimum commitments
What does 'double dipping' refer to in the context of event contracts and policies?
An activity done by hotels and customers
When are initial and rest of deposits due date and cancellation terms supposed to be stated in the contract?
Clearly
What is a proforma invoice in the context of event contracts and policies?
A 'good faith' agreement with specific details
What do deposit policies typically include?
A first deposit of 15% on contract signature and subsequent deposits leading up to the event
What is an example of meeting rooms attrition policies based on?
Penalties based on the proximity to the arrival date
Study Notes
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.
Test your knowledge of event contracts and policies with this overview quiz. Explore key clauses to include in contracts, such as payment schedule, termination, and indemnification, as well as attrition policies and deposit details. Perfect for event planners and hospitality professionals.
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