Event Management Agreement (Drafting)

The Event Management Agreement regulates transactions between an event management provider and its client. This agreement is suitable for businesses whose principal activity is to organize and plan corporate events, parties, or any other such occasions. This is to provide certainty in the event of ambiguities and uncertainties and disputes arising thereof. An event contract is a legally binding document that explicitly lays out the terms and conditions of agreement between an event planner and their client. This agreement is suitable for businesses whose principal activity is to organize and plan corporate events,parties, or any other such occasions.

Features of Event Management Contract:

1. Payment schedule

The contract and in event planning timeline must set a due date for the initial deposit. This is to make sure everything in writing. The client can pay the remainder when the event ends, or in smaller increments for each milestone in the planning phase. The agreement must break down the line items (e.g. venue rental, equipment, catering) and include taxes and other added fees.

2. Terms for cancellation

In this case, your contract can protect you from monetary loss. Note that all payments that you received before the cancellation are non-refundable. Also, the agreement states that clients are responsible for event costsmade since the last payment.

3. Cancellation-by-you clause

In order one has to face unexpected emergency, the contract has to be terminated. This type of clause is common in the hospitality industry and is known as a cancellation-by-hotel clause. In the event planning contract, include the scenarios that allow you to opt out. However, you also need to include provisions for the client you’re backing out on. This may include finding the client another third-party planner or reimbursing the client for the initial deposit.

4. Termination clause

A termination clause should not be confused with the terms of cancellation. Termination pertains to cancellation due to unforeseeable events that are beyond either party’s control.

This may include weather-related incidents, a government shutdown, a pandemic, or another disaster. A termination clause outlines the scenarios where neither party can be held liable. Of course, these scenarios are highly unlikely and the service provider/ planner need to protect yourself in contract.

5. Indemnification clause

An indemnification clause protects you from liability if you’re sued by a third-party due to negligence on the client’s end. If an attendee is injured, for example, the clause ensures that the attendee cannot hold you legally responsible. Another example is damage to the venue. In this case, the venue operators need to hold the client responsible, not you.