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Contracting the Event Venue

What is a Contract?

It is an agreement that is enforceable by law.

What is an Agreement?

An agreement is a promise or set of promises.

When a contract is considered to be valid?

A Contract is considered to be valid when:

1.) The agreement has been made between two or more parties who are legally competent and authorized to enter into a contract. For e.g. you can not enter into a contract with a minor.

2.) The agreement has been made on the free will of the parties. Free will means, the agreement has been made:

- Without giving threats or use of physical force.

- Without any undue influence i.e. party in the dominating position didn't take advantage of its position or authority to get consent from the other party.

- Without fraud. Fraud means deceiving or misleading someone intentionally.

- Without misrepresentation of facts.

- Not by mistake. You can declare a contract as Null and Void if your are able to prove in the court of law that the agreement has not been made on the free will or the other party is not authorized or legally competent to enter into a contract.

3.) The contract contains consideration (i.e. benefits and detriments). A contract without detriments (i.e. damages and harms) is legally insignificant.For e.g. if your contract doesn't contain the penalty/compensation if a certain clause is violated, then it has no significance.

4.) The objects and consideration in the contract are not lawful either wholly or in parts. For e.g. the following contract is considered to be void: 'After getting payment of US $ 1.22 million from Black Rose Corporation you will kill person 'A' or you will do a robbery on our behalf.'


Important points to remember while contracting Event Venue

1) Whatever you negotiate, whatever that is offered to/by you or mutually agreed upon (including venue services, fees, items' cost, rules and restrictions), should be specified in a written format on a stamp paper duly signed by the parties who are entering into the contract and who are legally competent and authorized to enter into a contract.

Never negotiate anything verbally. If the other party refuses to accept your proposal or there own promises in a written format, then don't do business with them.


2) Decide the compensation in case your event is forced to shut down or cancelled because of: noise ordinance, venue staff strike, change in the management staff, change in the ownership of the venue, buy outs, bankruptcies or other guests housed by the venue who are not associated with your event.


3) Make sure that the contract guarantees:

- The booked dates, time, venue space, return of deposits.

- Exact, itemized list of all the services promised and the fees associated with those promised services including maximum cost (i.e. the cost will not go over this amount)

- Promises and commitments discussed and agreed upon.


4) Never sign a contract immediately after the venue inspection. Take a copy of the contract agreement home/office. Read it thoroughly several times and discuss it with your team members and attorney. Compare the contract with contracts of other venues and then accept/reject it.


5) Always Consult your personal attorney to review the contract for you and make sure that the contract protects your interests against forceful shutdown of the event, venue staff's strike/shortage, change in the management staff or ownership of the venue, buy outs, bankruptcies or violation of any agreement or clause.


During contracting with the venue manager make sure that your contract contains the following clauses:

1) There should be no construction/repair work of the venue building or any of its parts without prior approval on the day of the event. (Decide the compensation with the venue manager if this clause is violated.)


2) No other event can take place in the venue on the day of my event. (If this is not possible then make sure that the other event doesn't affect the services provided to you by the venue like shortage of staff or parking space. It should not produce any party noise, music or announcement that affects your event's programs. Decide the compensation with the venue manager if this clause is violated.)


3) This contract is all inclusive and no other oral or written contract exists between the two parties stated in this agreement.