Why an Event Planning Contract Is Important
The creation of an event planning contract is crucial to ensuring that you, the planner, and the vendor have similar expectations of what will take place during the event, how the payment will be handled, what will happen should the event need to be cancelled or postponed, and how the remainder of the planning will be structured. A well-constructed contract serves to protect you and the other party by holding each person responsible for their actions, and providing a clear line of action in the event that something should fall through, or someone backs out of the contract .
The contract will ensure that you, as the planner, will not run into conflict with the vendor over payment (for example one person expecting to pay it all at once while someone expects payments to be made on a weekly basis), and assure the vendor that they will be paid in full and on time for their services. If you run into an issue with the venue or some other vendor and the event needs to be cancelled or postponed, having a legally binding contract protects you from suffering a financial loss if the other person can no longer be a part of the event, and also protects the other person from being forced to participate should something occur to make it impossible.
Essential Features of Your Event Planning Contract
A well-structured event planning contract typically contains the following key elements:
Scope of Work
This element of the contract outlines exactly what the event planner or coordinating company will provide for the client. It should delineate specific services provided along with a timeline for delivery, incorporating milestone dates whenever possible. If the client is also providing anything for the event, that should be included in this section of the contract, along with relevant dates and timelines. This section should describe how you plan to ensure a successful and smooth event from start to finish.
Payment Terms
Failure to meet stated payment terms is one of the most common complaints heard by attorneys who specialize in crafting contracts. Where an installment payment plan is being used, this section of the contract should describe in detail when each installment is due, and the accepted payment methods. Be sure to include any deposit required, as well as your policy on late payments and neither party "comingling funds" (using funds from this project for another). Include allowable methods of payment, including cash, check, credit cards, etc.
Cancellation Policy
While it is always best to be upfront about all services your agency will provide, it is also important to clearly state your cancellation policy. Your cancellation policy should include timelines for a client’s cancellation, such as "cancellation must be received at least 30 days prior to the event" to obtain a full refund. Any retainer paid to you (usually 10-20% of total fee) should be nonrefundable, and you should reserve the right to retain half or more of the remaining fee if they cancel with less than 30 days’ notice.
Liability
There are several different kinds of insurance that event planners can and should take out to protect against various kinds of claims, from damage caused to a venue, to guests or vendors being injured while on site. There are two main types of liability insurance that most event planners purchase: general liability and business owner’s policies. General liability covers injury or property damage sustained by a third party during your event, while business owner’s policies cover lost income due to events out of your control.
How to Personalize a Contract Template in Word
Once you’ve found an event planning contract template that fits your business, it’s important to personalize it so that it includes your specific terms and conditions. There’s no issue adding or removing sections, but do be careful that you’re not removing any that are necessary. Here’s how to personalize your contract template in Word:
1. Edit Text
Editing text in Word is simple, just double-click on the text and begin typing. If you want a quick and easy way to replace the text in a pre-written contract with your own information, Excel also has a feature called "Find and Replace" that can be extremely useful. You can search for specific phrases or words (like "the Event Organizer", "Venue", etc.), and click "Replace All" very quickly. Then, double-check the spacing in each paragraph to make sure that it looks good after the new text is added.
2. Add your Company Logo
To add your company logo to the top of the contract, click the "Insert" tab, select "Picture", then "From File". Select the picture file in your computer’s folders, and click "Insert". You can then move the logo around the contract to make it look as you’d like, just be sure to double-check that no other text or important parts of the contract are covered when you do so.
3. Change Font Sizes and Colors
Again, this is something that’s done quickly and easily using the tools in the "Format" menu. Depending on your business branding, you might want to make the rest of the text light grey instead of black, or use a different font style. Experiment with colors and sizes and don’t be afraid to move things around until you find a look that works well for you.
4. Consider Page Numbers and Table of Contents
Events can be long and complicated, and sometimes, it’s necessary to sit down with more than one event contract. One of the best ways to quickly navigate through them is with page numbers. Simply click "Insert", select "Page Number", and pick a number format. A table of contents with hyperlinks is also a useful tool, since it allows you to jump to various sections at the click of a button. For huge events, like weddings, it can be important to note the specific purpose of each contract, since there often may be a coordinator for each hall that you will be using. Just add a brief bit of text to the front of the contract stating what is to be included, and the specific event planner it relates to.
Pitfalls to Avoid in an Event Contract
There are a few common mistakes that I see being made again and again when it comes to event contracts, so let me walk you through a few of these and how to ensure your contract doesn’t fall into one of the categories below:
No Deposit
A deposit is an essential part of any event planning contract. Without a deposit, you don’t have a guarantee from the client that they are serious about working with you and that they will follow through. On the other hand, the client should never be asked to pay in full until the day of the event, because they are making a sizable investment and spending their money upfront could lead to them feeling as though they’ve lost out if they decide not to go through with the rest of the contract towards the day of the event. Additionally, they may feel as though they don’t have any incentive to work with you since they have already paid for the party. If they need to negotiate their deposit amount for any reason, it’s important to put that in writing as well.
Not Outlining "What if" Scenarios
The truth is that things do not always go according to plan. With an event, this is especially true. Paid deposits will no longer mean anything if the client feels that they should get refunded for every possible thing that goes wrong , and they may ask you to change a number of things for free if the event doesn’t go exactly as envisioned. The trick to preventing this type of problem is to clearly spell out what will happen if either party needs to cancel at the last minute, or if they need to make changes. The contract should outline what a reasonable amount of time is for one party to reschedule, how much notice they need to give the other party to cancel or reschedule, and what would happen in an emergency situation if the client needed to change the event location at the last second (or vice versa). Not having these scenarios in writing can lead to missed deadlines and disappointed clients.
Not Addressing Weather Conditions
There’s always a chance that mother nature could come in and ruin an outdoor event, so it’s your responsibility to protect yourself from paying for a canceled event (or one that’s moved indoors) because of bad weather. Even if most outdoor events will be canceled due to bad weather, you can’t guarantee that your clients will agree. Thus, you’ll want to include in the contract that if bad weather occurs, you have the right to determine whether or not the contract will be canceled or if it needs to be moved indoors. Of course, if the client chooses an outdoor venue and bad weather was expected when they signed the contract, having the right to move the event indoors is a good compromise.
These are just a few examples of mistakes that many new event planning companies make.
Save Time with Online Contract Templates
For those who do not already use Microsoft Word document templates, there are many online resources that provide them at no charge. The many templates in these resources are usually quite professional and often can save you lots of time in document formatting. Moreover, since the templates are readily available and come from reputable sources, you will not have to worry about whether or not the form you are using is legitimate. There are always concerns that forms that are been transferred from one lawyer to another have been altered in an unprivileged manner.
In addition, by using templates from one of these sources, you will invariably ensure that you have captured all of the key terms for your type of contract. One of the worst mistakes that a lawyer can make is to fail to include an important term that is very common or even essential to a common transaction. Because the most common forms will have all of the key terms in them, using the form protects against this drafting problem.
Legal Issues to Consider When Drafting Contracts
While event planners generally have great insight into their logistic needs, it is likely that they would benefit by gaining some understanding of legal issues regarding contracts. Basic contract principles apply to each agreement. Unless prohibited by law, the parties may modify the terms and conditions of the contract by mutual consent. The terms may be so interdependent that a court will not enforce one party’s obligations in the absence of corresponding performance by the other party. Courts may refuse to enforce unconscionable contracts or contracts that are otherwise contrary to public policy. Courts generally will enforce contracts against minors, even if the minor has disaffirmed the agreement, but they will not enforce the contract against the minor’s guardian. Courts may refuse to enforce contracts made by intoxicated or mentally incompetent persons. Courts are unlikely to enforce contracts that were entered into under mistake or fraud.
In addition to these general contract principles, there are several other areas that warrant consideration. First, while agreements need not be in writing to be enforceable, certain types of agreements must comply with statute of frauds laws . It is important to determine if the activity in question is covered by a statute of frauds. If it is, ensure that the agreement complies with the statute. In addition, many licensing and permitting schemes require advance approval before engaging in certain activities. Look to the laws governing the appropriate licensing authority and get approval as required.
Existing industry standards may also affect enforceability. Parties who engage in a speculative business may not collect an upfront payment from patrons for future services. If the parties are in the business of renting space for public assembly, special regulations applicable to those businesses should be considered. Similarly, hotels and other facilities that provide sleeping accommodations need to be familiar with those special obligations.
Lastly, a federal statute prohibits certain businesses from engaging in false advertising, certain types of sales solicitation, deceptive pricing, misrepresenting guarantees on merchandise, and most promotional marketing promotions. These prohibitions also extend to product labeling. If you are engaged in marketing or merchandising, you should familiarize yourself with existing statutory requirements so that you may comply.