W8 contracts and proposals
- 2. DEFINITIONS Contract: a binding agreement between two or more persons or parties; a business arrangement for the supply of certain goods or services at a fixed price
- 3. TYPES OF EVENT MANAGEMENT AGREEMENTS Consulting Agreement - Where one party agrees to provide consulting services for another party. Exhibitor Contract - An agreement between an individual exhibitor and the sponsor or promoter of an exposition to lease space for a specific booth space.
- 4. Vendor Agreement - An agreement between the vendor and the event manager or client to provide specific services or products for the event. Hotel Contract - An agreement between the hotel and the individual/organization holding the event to provide sleeping rooms and/or function space and other services (food and beverage) for a specific event.
- 5. Purchase Order - An order to a vendor to provide services or products. Sponsorship Agreement - A contract between the sponsor and the event organizer/producer in which the organizer agrees to provide specific marketing services to the sponsor for a designated fee and/or other considerations.
- 6. CONTRACT CONSIDERATIONS Review thoroughly and ask for clarification Ensure all details are included! State the legal name and address of all parties involved Include important dates and date of signatures
- 7. Be sure the individual who signs has legal signing authority to represent the organization Payment policies should be clear including cancellation policies, dates and amounts, goods and services to be received including dates and quantities Penalty clauses should be clear
- 8. Change policies and procedures should be stated What is guaranteed what is not Inconsistent terms will be construed against the drafter. When your contracts go out sloppy you lose credibility with your client and the court
- 9. Understand the proper way to Amend a Contract or Proposal Don’t allow oral modification use a clause which states that all modifications to the contract must be made in writing. Identify a person or persons on your staff and with the contracting party who are allowed to modify the contract on the party’s behalf. Make sure that all modifications are signed off to by both parties. If an oral modification is made on site make sure the person who is asking for the change is authorized to do so.
- 10. Always Define Your Terms Make sure the other party understands the terms (i.e. guarantees). It is a good idea to have them sign off on clauses like the guarantee so that they won’t come back later and say I didn’t know about that or I didn’t understand.
- 11. CONTRACT CONTENTS Contract participants Date of agreement Fees and Payment schedule Goods and services listed in detail, delivery dates, amounts Cancellation, change details Confidentiality Signing authorities, date, witnesses
- 12. Contract Terms Attrition Clause – a specific provision in a contract that provides for payment of damages to the hotel if a specified percentage of contracted room nights met. Cancellation Clause – outlines penalties for both parties if cancellation occurs for failure to comply with the terms of the agreement
- 13. Force Majeure – limits liability due to Acts of God, Acts of War, civil disturbances, labour strikes Hold Harmless – neither party will hold the other responsible for any damages or theft to materials or equipment owned or rented by the other party
- 14. Indemnification – one party agrees to hold the other harmless in spite of what happens and whose fault it is Liquidated damages – part of contract dealing with procedures, penalties, the rights of the party causing damages