Why Skipping a Founders’ Agreement Could Sink Your Startup Starting a business with friends or...
Why Every Small Business Needs an Event Agreement
Are you planning an event for your business? That is exciting, but it comes with its risks.
Everything needs to be perfect. The venue, the food, the music, and everything else must be exceptional. To achieve this, you must sign an event agreement. Without a well-written event agreement, there is a high likelihood that things may go awry. But what exactly is an event agreement? It sets out the terms. Who manages the event? Who makes the food? It protects you when things go wrong. Every small business owner planning to organize an event needs this vital agreement in place. It is a must-have, even for small events.
It is high time to examine what this contract requires.
👉 Visit our Legal Center to browse all contract templates for events, vendors, and service agreements.
1. Basic Event Details (Date, Time, Venue, and Location)
You can start with the basics, such as the event details, the venue's address, the date, and the event's time. This helps everyone, including the invitees, understand the event clearly. If the DJ shows up at the wrong venue, you will realize the importance of having the agreement.
2. List of Vendors and Their Responsibilities
Every good event contract lists the people involved. Ensure that you use their official business names in the document. Your next move is to explain the roles of every person involved.
- Stat: According to Sched, 47% of event creators reported that communication issues were their most significant challenge during event planning and execution—highlighting how vendor miscommunication, often due to vague contracts, can derail events.
👉 View the full post
i. Who is responsible for the setup?
ii. Who is the caterer?
iii. Who makes the food?
iv. Who brings the desserts?
v. Who is the DJ?
vi. Who cleans after the event?
vii. [add any other commercial arrangements in detail to ensure no leave is left unturned]
If a role is not clearly defined, it may become a significant problem. A contract clearly defines who is responsible for what. This way, no one passes the blame to the other.
Need a ready-made event agreement?
Use SMVRT Legal's customizable contract template to protect your next event.
👉 Click Here to Start Your Event Agreement Now
3. Define the Scope of Services Clearly
The scope of services (i.e., what you are getting) must be clearly outlined in the agreement. If you are hiring a caterer, list the entire menu, including every single side, meal, and dessert they will provide. If you are renting a venue for your event, clearly specify what is included, such as the price of chairs and tables, as well as the use of the kitchen, etc. Spelling out details now means fewer arguments and problems later.
4. Include a Timeline and Event Schedule
Timelines are of utmost importance in these agreements. You may have hired the best caterer, but if it arrives two hours late, the event is ruined. Thus, the contract must specify the timeline, including setup time, start, and end times. Timing keeps everyone on schedule. When time is clear, the event runs smoothly and becomes one to remember.
👉 Learn More About Small Business Event Agreement Templates - deffine payment terms, timelines, and vendor roles - all in one place.
5. Spell Out Payment Terms and Deadlines
This is where it gets serious. The event agreement must specify the total fee, the fee payable in advance, and the final payment amount. The timeline of these payments must be written down in the contract. The contract must also specify how payments can be made and include provisions for handling late payments. Having payment terms in writing avoids hard talks later. Importantly, it helps you protect your budget and energy.
6. Include a Clear Cancellation Policy
Cancel culture is not just a phrase; it's a phenomenon. Events do get cancelled. You must be ready for this eventuality at all times. How much notice must they provide before canceling? Can the event be rescheduled? If yes, how? Ensure your contract includes clear terms regarding cancellations. Your agreement will help prevent anger, guilt, or fights if there are changes in events.
7. Limit Liability and Assign Risk
In this contract, you have to limit your liability. What if someone gets hurt during the event? What if a vendor, caterer, or DJ damages the venue? Being safe is better than being sorry. Your contract must clearly explain who is liable for what.
The goal here is simple. Protect yourself from liability and avoid lawsuits.
8. Add a Force Majeure Clause (Unforeseen Events)
We are certain about one thing: things do not always go as planned. What happens if disaster hits? What happens if there is a blackout? What happens if there is an earthquake? This is the point at which the force majeure clause comes into play.
Are you confused about the phrase "force majeure"? It is a fancy way of saying "uncontrollable event." It protects both parties to a contract from being blamed or sued. If a natural disaster leads to the cancellation of your event, you are safe. When things hit the fan, you stand legally covered.
9. Assign Responsibility for Permits and Licenses
You want to serve alcohol at the event. You may need permission for that. It requires written permission. Sounds like a big deal. It does not matter. Grant of permission is a necessity. The contract must specify whose responsibility it is to obtain the required permits. Is it your job? Is it for the vendor to get permits? This is a step-by-step process, and you cannot skip any details. If you skip this step, your event could get stopped by authorities, creating unnecessary inconvenience and embarrassment.
10. Dispute Resolution and Governing Law Clauses
You must clarify whether the state laws apply and govern your contract. The contract must clearly outline methods for resolving disputes. Should you try mediation first? When the dispute resolution clause is explicit, you will thank yourself when resolving conflicts.
Frequently Asked Questions about Event Agreements
❓ Do I need a written contract for a small event?
Yes, a written contract is necessary for small events. Even small events can lead to significant disputes. A written event agreement clarifies responsibilities, timelines, and payments, and it protects you in the event of complications.
❓ What should an event agreement include?
Your agreement should detail the event date, vendor responsibilities, setup and breakdown times, payment terms, cancellation policy, liability clauses, and required permits.
❓ Who should sign the event agreement?
All primary parties involved, including the business owner and any vendors or partners, should sign the agreement with their legal or business entity name.
❓ What happens if someone cancels or doesn't show up?
Your agreement must include a cancellation policy with clear timelines, refund terms, and penalties for breaches. This protects you from unexpected no-shows or cancellations.
❓ What is a force majeure clause?
A force majeure clause safeguards both parties in the event of an unforeseen circumstance, such as a natural disaster, power outage, or government regulation, that causes the cancellation of an agreement.
Remember that even small events can lead to the biggest messes. A written event agreement gives you clarity. It makes sure you remain protected.