Page 194 - DMGT304_EVENT_MANAGEMENT

Unit 8: Protocol and Staging

10. Contracting the Venue: Following are the important points need to be considered while Notes
contracting the venue:
1. What is a Contract?
It is an agreement that is enforceable by law.

2. What is an Agreement?
An agreement is a promise or set of promises.
3. 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 cannot 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 example 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.
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).

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