33 Questions
What type of contracts are not applicable in the hospitality industry?
Oral contracts
Why is it important to detail certified vendors and the services they provide in a contract?
To ensure clear expectations of services provided
What is a valuable consideration in a contract?
Rates for the services
What should contracts for events include?
Payment schedule, cancellation terms, termination clause, indemnification clause
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 or fees for not fulfilling minimum commitments
What is 'double dipping' in the context of event contracts?
An activity done by hotels and customers
What is an example of cancellation policies?
Specific percentages invoiced based on the proximity to the event date
What is an example of room attrition policies?
Penalties based on reductions in the number of contracted room nights
What is an example of F&B attrition policies?
Charges for cancellations affecting the expected attendees
What is an example of meeting rooms attrition policies?
Penalties based on the proximity to the arrival date
What does the proforma invoice confirm?
The buyer’s intentions for the event
What is the purpose of the first deposit on contract signature?
To confirm the buyer’s commitment to the event
What can a proforma invoice be converted to if changes are requested?
A completed invoice
What does the termination (force majeure) 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 is 'double dipping' in the context of event contracts?
An activity done by hotels and customers
What does the attrition clause outline potential damages or fees for?
Not fulfilling minimum commitments
What is the purpose of the first deposit on contract signature?
To confirm the buyer’s intentions for the event
What does a proforma invoice confirm?
The buyer’s intentions for the event
What is an example of cancellation policies?
Specific percentages invoiced based on the proximity to the event date
What is an example of room attrition policies?
Penalties based on reductions in the number of contracted room nights
What is an example of F&B attrition policies?
Charges for cancellations affecting the expected attendees
What is an example of meeting rooms attrition policies?
Penalties based on the proximity to the arrival date
What does a 'good faith' agreement with specific details mean in the context of a proforma invoice?
A confirmation of the buyer’s intentions for the event
What can a proforma invoice be converted to if changes are requested?
A completed invoice
What type of contracts are not applicable in the hospitality industry?
Oral contracts
What does the 'valuable consideration' in a contract refer to?
The exchange of something of value
What should be detailed in a contract to avoid misunderstandings?
Certified vendors and the services they provide
What type of contracts are not applicable in the hospitality industry?
Oral contracts
What does the valuable consideration in a contract refer to?
Rates for the services
What should contracts for events include to avoid misunderstandings?
Clear expectations of services provided
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.
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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