What contract clauses do event planners often overlook?

1 Force majeure

Force majeure is a clause that allows the parties to terminate or modify the contract in case of unforeseen events or circumstances that are beyond their control, such as natural disasters, wars, pandemics, strikes, or government actions. This clause can save you from losing money or facing liability if the event is canceled or postponed due to such events. However, you need to make sure that the clause is specific and clear about what constitutes force majeure, how it affects the obligations and payments of the parties, and what remedies are available in case of a breach.

2 Cancellation and termination

Cancellation and termination are clauses that specify the conditions and consequences of ending the contract before the event date. These clauses can protect you from losing your deposit, paying penalties, or being sued by the other party if you or they decide to cancel or terminate the contract for any reason. However, you need to make sure that the clauses are fair and reasonable, and that they reflect the actual costs and damages that each party would incur in case of cancellation or termination. You also need to make sure that the clauses include a notice period, a refund policy, and a dispute resolution mechanism.

3 Indemnification and liability

Indemnification and liability are clauses that define the responsibilities and obligations of each party in case of any claims, damages, injuries, or losses that may arise from the event. These clauses can protect you from being held accountable or liable for any issues that are caused by the other party or by third parties, such as guests, vendors, or venue staff. However, you need to make sure that the clauses are balanced and reasonable, and that they do not waive or limit your rights or remedies in case of negligence, fraud, or breach of contract by the other party.

5 Subcontracting and assignment

Subcontracting and assignment are clauses that regulate the ability of each party to delegate or transfer their rights or obligations under the contract to another party, such as a subcontractor, an assignee, or a successor. These clauses can affect the quality, consistency, and accountability of the services or products that are provided for the event. Therefore, you need to make sure that the clauses are explicit and restrictive, and that they require the prior consent and approval of the other party before any subcontracting or assignment takes place. You also need to make sure that the clauses hold the original party responsible and liable for the performance and compliance of the subcontractor or assignee.

6 Change orders and amendments

Change orders and amendments are clauses that allow the parties to modify or update the contract in case of any changes or additions to the scope, specifications, or terms of the event. These clauses can help you to accommodate the needs and preferences of your clients, vendors, or venues, as well as to adjust to any unforeseen situations or circumstances that may affect the event. However, you need to make sure that the clauses are formal and written, and that they specify the nature, extent, and impact of the changes or additions, as well as the corresponding adjustments in the obligations and payments of the parties.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?