54 Questions
What type of contracts are not applicable in the hospitality industry?
Oral contracts
What should the agreement in the hospitality industry contain to avoid misunderstandings?
Clear expectations of provided services
Which subject area is NOT typically included in a contract for hospitality services?
Insurance requirements
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 is 'double dipping' in the context of event contracts and policies?
An activity done by hotels and customers
What is the purpose of a proforma invoice in the context of event contracts?
To confirm the buyer’s intentions for the event
What does the room attrition policy include penalties for?
Reductions in the number of contracted room nights
What do deposit policies typically include?
First deposit of a percentage on contract signature and subsequent deposits leading up to the event
What is the purpose of the group rate clause in contracts?
To specify the discounted rate for a group of attendees
What is the purpose of the damages policy in event contracts?
To outline potential fees for damages caused by the client
What is the attrition clause related to in event contracts?
Potential damages or fees for not fulfilling minimum commitments
What is the purpose of the F&B attrition policy in contracts?
To outline charges for cancellations affecting the expected attendees
What does the initial and rest of deposits due date refer to in event contracts?
The dates by which the initial and subsequent deposits are due
What does the termination clause provide legal protections for in event contracts?
Cancellations due to reasons beyond control
What does the indemnification clause protect the hotel from in event contracts?
Legal action due to client negligence or damage
What does the attrition clause outline potential damages or fees for in event contracts?
Not fulfilling minimum commitments
What is 'double dipping' in the context of event contracts and policies?
An activity done by hotels and customers
What do deposit policies typically include in event contracts?
First deposit of 15% on contract signature and subsequent deposits leading up to the event
What is the purpose of the proforma invoice in the context of event contracts?
To confirm the buyer’s intentions for the event
What do example F&B attrition policies include charges for in event contracts?
Cancellations affecting the expected attendees
What do example of room attrition policies include penalties based on in event contracts?
Reductions in the number of contracted room nights
What does the group rate clause in event contracts typically address?
Discounted rates for a specified number of rooms
What does the damages policy in event contracts typically cover?
Liability for damage to hotel property
What does the initial and rest of deposits due date refer to in event contracts?
Specific dates for payment of initial and subsequent deposits
What do example of meeting rooms attrition policies include penalties based on in event contracts?
Proximity to the arrival date
What is the purpose of detailing certified vendors in a hospitality contract?
To clarify the services provided by the vendors
What is the primary reason for avoiding oral contracts in the hospitality industry?
They may lead to unmet expectations
What does the 'A PROMISE TO PERFORM' subject area in a hospitality contract typically involve?
Commitment to deliver the agreed services
What does the attrition clause outline potential damages or fees for in event contracts?
Not fulfilling minimum commitments
What does the indemnification clause protect the hotel from in event contracts?
Legal action due to client negligence or damage
What do example F&B attrition policies include charges for in event contracts?
Cancellations affecting the expected attendees
What do example of meeting rooms attrition policies include penalties based on in event contracts?
Proximity to the arrival date
What do deposit policies typically include in event contracts?
First deposit of 15% on contract signature and subsequent deposits leading up to the event
What is the purpose of the proforma invoice in the context of event contracts?
To confirm the buyer’s intentions for the event and is a 'good faith' agreement
What does the termination clause provide legal protections for in event contracts?
Cancellations due to reasons beyond control
What does the room attrition policy include penalties for in event contracts?
Reductions in the number of contracted room nights
What is 'double dipping' in the context of event contracts and policies?
An activity done by hotels and customers
What does the group rate clause in event contracts typically address?
Negotiated rates for a group of rooms
What does the damages policy in event contracts typically cover?
Damages caused by the client or attendees
What does the initial and rest of deposits due date refer to in event contracts?
Payment details and due dates for initial and subsequent deposits
What does the indemnification clause protect the hotel from in event contracts?
Legal action due to client negligence or damage
What does the attrition clause outline potential damages or fees for in event contracts?
Not fulfilling minimum commitments
What is 'double dipping' in the context of event contracts and policies?
An activity done by hotels and customers
What is the purpose of the proforma invoice in the context of event contracts?
Confirm the buyer’s intentions for the event
What do example of room attrition policies include penalties based on in event contracts?
Reductions in the number of contracted room nights
What does the termination clause provide legal protections for in event contracts?
Cancellations due to reasons beyond control
What do deposit policies typically include in event contracts?
First deposit of 15% on contract signature and subsequent deposits leading up to the event
What does the damages policy in event contracts typically cover?
Client-caused damages to hotel property
What is the purpose of the group rate clause in event contracts?
Provide discounted rates for a group of attendees
What does the initial and rest of deposits due date refer to in event contracts?
Payment details and due dates for initial and subsequent deposits
What does the F&B attrition policy in contracts include charges for?
Cancellations affecting the expected attendees
What does the 'A PROMISE TO PERFORM' subject area in a hospitality contract typically involve?
Commitment to fulfill the terms of the contract
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.
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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