In light of the healthcare scare and financial upheaval in the past week, companies everywhere are canceling in-person events and are looking to manage with online events until the COVID-19 emergency is contained. Many corporate event planners and companies who may be suffering from the thought of a recession and layoffs may have also found themselves with a less-than-favorable cancellation clause.
How important is an event Cancellation Clause?
It is easy to overlook the importance of the cancellation clause when you don’t see any reason for a cancellation to occur, but then here comes a virus and BOOM, that clause is suddenly something you are kicking yourself for not paying closer attention to at the contract stage. Short of being able to invoke force major, you only have your cancellation clause to control damages.
Here are some factors to consider when reviewing the clause:
Is the cancellation clause clear?
Does the clause state exact dates and cancellation damage?
Are the cancellation damages reasonable?
Does the clause state how the cancellation fee is calculated in detail?
Is the clause based on profit versus room rate and full food and beverage guarantees?
Does the number of rooms in the calculation first remove attrition, comped rooms which should not be included?
Does the clause state how resold rooms will be credited?
There are even more questions to think through as you review the individual contract. Since there are so many companies who are struggling this week, I would like to offer my services to help you review your comapny’s cancellation clause. Fill out this form and we can spend 20 minutes on the phone, reviewing the clause you currently use, and give you ways to improve it!
Reviewing your clauses during the Pandemic
Let’s spend our time away from the office, doing work that will save your company time and money, today and tomorrow. Be safe and stay well!
- Sally Mainprize, Iron Peacock Events
