Podcast
Questions and Answers
What is the key reason why oral contracts are not applicable in the hospitality industry?
What is the key reason why oral contracts are not applicable in the hospitality industry?
- Oral contracts may lead to difficulties and misunderstandings due to unclear expectations. (correct)
- Oral contracts are not legally binding in the hospitality industry.
- Oral contracts are not common practice in the hospitality industry.
- Oral contracts are not cost-effective in the hospitality industry.
What should be detailed in a contract to avoid misunderstandings regarding services provided in the hospitality industry?
What should be detailed in a contract to avoid misunderstandings regarding services provided in the hospitality industry?
- Clear expectations of provided services and services not provided. (correct)
- Legal jargon to ensure contract validity.
- History of the certified vendors involved.
- Detailed financial breakdown of the contract.
Which subject area is NOT typically included in a contract for hospitality services based on the provided text?
Which subject area is NOT typically included in a contract for hospitality services based on the provided text?
- Meeting rooms and accommodation details
- A promise to perform
- Certified vendors' history (correct)
- Payment options and structure
What does the termination clause provide legal protections for?
What does the termination clause provide legal protections for?
What does the indemnification clause protect the hotel from?
What does the indemnification clause protect the hotel from?
What does the attrition clause outline potential damages or fees for?
What does the attrition clause outline potential damages or fees for?
What is 'double dipping' associated with in the context of event contracts?
What is 'double dipping' associated with in the context of event contracts?
What does the proforma invoice confirm?
What does the proforma invoice confirm?
What do deposit policies typically include?
What do deposit policies typically include?
What are example of cancellation policies based on?
What are example of cancellation policies based on?
What do example of room attrition policies include penalties for?
What do example of room attrition policies include penalties for?
What do example of F&B attrition policies include charges for?
What do example of F&B attrition policies include charges for?
What does the termination clause provide legal protections for?
What does the termination clause provide legal protections for?
What does the attrition clause outline potential damages or fees for?
What does the attrition clause outline potential damages or fees for?
What do deposit policies typically include?
What do deposit policies typically include?
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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.
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