Read Every Word

Some event contracts can be incredibly lengthy. Most events include multiple contracts with multiple suppliers, performers, venues, and speakers. It feels like contracts are written in size three font and are still using language from an original version drafted in the 1800’s. I have seen planners take a cursory glance at the boilerplate of a contract, discount it as “standard,” and sign away without giving it a second thought. I just want to scream, “Danger Will Rogers!” You absolutely must read every word.

The boilerplate, or “additional terms and conditions” usually found in the back of a contract, generally contains standard information, but it is rarely written the same way for every contract. Organizations tailor the language to benefit themselves. Contracts are inherently designed to protect the initiator. If you as the recipient don’t review it for self protection, you could open yourself up to unnecessary risk.

Not only do you need to review the contract and boilerplate, but any riders and addendums as well. It is important to understand the clauses; force majeure, cancellation, minimum requirements, financial obligations, organizational risks, insurance indemnifications, attrition, as well as knowing what happens if there are renovations at the event venue, a transfer of ownership of the event property, and much, much more. It’s incredibly important to understand who is responsible for what under a variety of circumstances.

Many organizations ran into contract issues when trying to cancel their events under force majeure with the COVID-19 pandemic in 2020. Some clauses were clearly written and some were not. Some fell under the cancellation penalty clause instead of force majeure because exact conditions weren’t met. Some events were forced to rebook for a future date instead of being allowed to cancel. This was a very expensive learning opportunity for some organizations or events.

Take time to sit with a lawyer and gain a basic understanding of contract language. Make an appointment to sit with an insurance agent to grasp liability concepts. Not only will it help you choke down the reading, but it will help you recognize clauses in the contracts that require additional review by a legal professional.

When you end up face to face with a scenario you didn’t expect, but were prepared for because you read the contract thoroughly, your organization could save money on penalties or legal fees from your due diligence. I can’t stress it enough: Read. Every. Word.

*I am a Certified Meeting Professional, not a lawyer. I am only speaking from years of personal experience with contract, boilerplate, rider, and addendum reviews. If you need actual legal advice, please seek the appropriate assistance.

If you have a crazy contract story to share, I’d love to hear it! Email me with your story.

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