Contracts 101

 

Event planning and contracts … the two go hand in hand. For seasoned event planners, contracts are often second nature. For new event planners, contracts can seem daunting with the legal jargon. This blog post is here to help.

What is a contract?
A contract is simply defined as an agreement between two or more parties. It is legally binding in a court of law. Contracts are in place to protect both parties.

Do I have to sign a contract?
Yes! If a company doesn’t offer you a contract, request one. This is your safety net when it comes to executing your event.

Who signs the contract?
This can be a little harder to clearly define since your church or organization might have rules set in place. Make sure to contact those in leadership positions within your organization prior to signing a contract. The person signing may be held financially responsible.

What should event contracts include?
It is not uncommon to have contracts with multiple entities. Depending on your event logistics, you may have contracts with a venue, hotel, guest speaker, worship band, rental companies, catering companies, etc.

Every contract should include dates and rates. Dates can include the actual event date plus any type of cancellation policies. For contracts with speakers or bands, clearly defined travel arrangements should be included. Contracts with musicians and some speakers also come with riders, documents explaining technical and hospitality needs. Rental and catering companies should include specific items requested and set-up/tear-down times, as well as dates to give a final guest guarantee. Housing contracts should include room types and dates pertaining to when and how room blocks can be adjusted (and any related financial impact).

In addition, all contracts should have an “Acts of God” or “force majeure” clause in the event a natural occurrence cancels or significantly alters an event.

What makes a contract binding?
In the past, verbal contracts were solidified by a handshake, or, if the parties really wanted to reach an agreement, the handshake might include spitting on the hand prior to the shake. Thankfully, spitting on hands isn’t a common practice today. Contracts are fully executed once signed by both parties. In some cases, a deposit might be required, as well.

What should I do before I sign a contract?
READ IT. All OF IT. And read it again. Know what you are committing yourself to before signing the agreement. Be detailed as you go through each section. Have another person read it, as well. As you work with contracts from different entities, cross reference them to make sure there are no discrepancies. For example, if your venue states you cannot bring in outside food, yet your worship band requires a certain type of food in their green room, you’ll need to make sure the catering company through the venue will be able to provide that and at what cost. Read it … and read it again!

What should I do after I sign a contract?
Keep a copy on file to refer to as needed. Also, go through each contract and note deadlines for various tasks. Schedule these on your calendar a week prior to when they are due in case you need to complete any additional work to meet that deadline. Deadlines could include room block adjustment dates, guarantees for catering, housing lists and room set-up forms turned in, and so on.

Event planners, don’t be afraid of contracts. Contracts are put in place to protect both you, your participants, and those you are working with. Realize they are legally binding, and you will be held to the terms of the agreement. Read them carefully. If you don’t understand something in the contract, ask prior to signing. Understand what you are committing to before you commit to it.

 

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