A termination clause outlines the scenarios where neither party can be held liable. This may include weather-related incidents, a government shutdown, a pandemic, or another disaster. Termination pertains to cancellation due to unforeseeable events that are beyond either party’s control. Termination clauseĪ termination clause should not be confused with the terms of cancellation. This may include finding the client another third-party planner or reimbursing the client for the initial deposit. However, you also need to include provisions for the client you’re backing out on. In the event planning contract, include the scenarios that allow you to opt out. This type of clause is common in the hospitality industry and is known as a cancellation-by-hotel clause. But what if it’s you, the event planner, who wants to opt out? It happens - maybe you get a last-minute request from a higher-profile client, a vendor you hired backed out, you face an unexpected health emergency.
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Cancellation-by-you clauseĬlients backing out midway is not uncommon. This way, if the last payment was the initial deposit, then you’ll be compensated for all the work you’ve done since then. Note that all payments that you received before the cancellation are non-refundable.Īlso, state that clients are responsible for event costs made since the last payment. In this case, your contract can protect you from monetary loss.
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What do you do if you’ve already planned some of the event? It’s possible that a client will pull out midway through the event planning process. Go from contract to stunning event in minutes