As there are public events such as concerts, festivals, tradeshows, exhibits and many more; there are also so called private events. As the name states, these events are closed off to the public and to gain entry is by invitation only. A good example of such are private parties, weddings, birthdays, corporate conferences and seminars. When a prospect client has read through the private event proposal and has expressed their verbally agreement, then a private event contract should be exchanged. Having a legal contract in place forces those involved to agree in writing on a set of terms and conditions. Read more about a private event contract in our article below. Also should you need any guide when writing up a this proposal, scroll down and check out our free private event contract samples.
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What Is a Private Event Contract?
A contract is a legal document that protect parties involved and is an a legally enforceable agreement. And this contract is very much part in event planning, regardless of nature. In this case, if you are an event planner creating a private event contract for your client is important so they may go over it and seal his or her agreement with a signature. A private event contract is a document that outlines the full understanding of the business relationship and scope of the work so that no one can claim any misunderstandings later down the road. The key factor is the avoidance of misunderstanding that either the event planner or the client may use against each other. With a contract, there is solid proof of the agreement between the parties involved.
How To Write a Private Event Contract?
Contracts is an important document for those running an event planning company, since an exchange of service for a fee is to be rendered. This private event contract will help your clients to understand your business, how it works and how they can use the services. It will provide an understanding of your operational and sales processes so that clients can manage their expectations. So this is a good business practice to communicate with your clients. Verbal communication is one thing, but this could be easily forgotten and holds no solid bearing as anyone can pass it off which again instigate misunderstanding. So the most obvious option is through a contract. When preparing an private event contract, this should more or less include the following:
I. List of Services
If you have initial forwarded an event proposal to your client, and if not changes are required then once again include all detailed information of the services to be rendered. The agreement should contain clear expectations as to what services are provided and what those services are. Provided services might include catering, on-site event staff, marketing, and audio/visual equipment, but it’s important to also specify which services are not included. Make sure you list all the task clearly so the client will understand the scope of work intended for the event.
II. Cancellation Terms
This is one important clause to protect your event planning company and the client’s best interest as well. These terms protect your income and decrease the likelihood a client will cancel, especially when someone has a lot of money to lose. Take note to include the following:
- Cancellation clauses should state that any fees or deposits paid up until the cancellation are nonrefundable
- A clause in your contract ensures you get paid if the event host must cancel their plans or backs out
- It should state what constitutes a valid event cancellation and how long the client has to cancel before being charged the full amount
III. Payment Terms
In this section you need to clearly specify all the payment methods in your private event contract. Outline an estimated budget for the event to give the client a general idea of what to expect, state the initial deposit due date in the contract and note that no work will begin until the deposit is received, and indicate the date upon which the final payment must be received to deliver services. Remember, your payment schedule should best suit your business and cash flow needs, including any added fees and taxes.
IV. Termination Conditions
A termination clause provides the event planning company with legal protections if the services are canceled for reasons beyond their control. This will give the company the power to cancel all obligations and services under certain extreme conditions such as natural calamities (circumstances beyond one’s control include hurricanes, tornadoes, and floods). Also the clause must define which circumstances are covered, who has the authority to cancel services, and what happens if those services are canceled.
V. Indemnification Clause
The purpose of this clause serves to compensate a party for harm or loss arising in connection with the other party’s actions or failure to act. The intent is to shift liability away from one party, and on to the indemnifying party. This will protects the event planner/company from legal action due to client negligence. With this clause in place the client cannot hold you or your planning firm responsible for damages, injuries, or losses that occur due to their actions.
What Is the Difference between a Proposal and a Contract?
A proposal is written in hopes to close a deal, by showcasing a company’s product and services relevant to the client’s request or requirements. Whereas a contract is a legally binding document that seals the agreement between both parties.
What Happens When There Is a Breach of Contract?
The liability will fall into the guilty party who must in return remedy the breach. The primary solutions are damages, specific performance, or contract cancellation and restitution.
Can Contracts Be Amended?
Through a contractual amendment, this should be mutually agreed upon by both parties.
Being able to win the interest of your client is as good as anything for event planning companies. But ensuring that nothing goes amiss, should be all included in your private event contract.
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