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Just Said Yes May 2015

Contract negotiations

Private User, on March 26, 2014 at 12:09 PM Posted in Etiquette and Advice 0 10

We are in the process of negotiating our venue contract and I, as a law student, feel that the contracts are very one-sided. I've asked all our vendors so far to make changes and our photographer was great about it, but I feel like our reception venue is more hesitant. I am aware that our event manager does not own the business and therefore must get permission to make changes, but they have several policies that we want changed.

A couple examples are:

1- "due to occasional fluctuating market costs, all quoted food and beverage prices are subject to change"

2-"the Club shall have the right to cancel this agreement upon notice to the Customer. " No mention of a refund, but if we cancel it says, "If it is necessary to cancel, the Customer shall pay an Event cancellation fee. Events cancelled less than sixty (60) days in advance of the Event Date will be charged applicable Room Rental fee(s), Food Minimum and any other contracted charges."

Am I just being paranoid?

10 Comments

Latest activity by DC Julie, on March 26, 2014 at 1:37 PM
  • Jennifer Hamric
    Jennifer Hamric ·
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    I'm not 100% on the inter workings of venue contracts but basing it on mine, I think that the prices could be set in at this point. As far as the second point, they have to be sure to cover their costs if your wedding falls through Smiley smile.

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  • Barbara
    Master September 2014
    Barbara ·
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    No-- you're being smart! Food prices should definitely not be subject to change (if they insist, then you need to make sure there is a cap on it-- like no more than 3%), and yes, there should be something that specifies you will be refunded should they cancel.

    We requested a lot of contract changes from our venue, and even though they couldn't change the wording in the contract itself, they could add an addendum to clarify/add additional info.

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  • Emmerdoodle
    Expert April 2014
    Emmerdoodle ·
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    Considering you're more than a year out, I don't think it's unreasonable of the venue to change their prices due to the market. I booked mine in 2012, and they also had a line like that in it because they hadn't set their 2014 prices yet. However, they also had a line that stated the meals would be between "X and Y dollars" so it wasn't unreasonable or unafforable when the price did go up.

    I do not think it's unreasonable to ask for clarification on the refund if they cancel the event, though.

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  • Out the Window
    Master May 2014
    Out the Window ·
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    I booked my venue a little over a year out, but my prices are "locked in" at 2013 prices even though my wedding is 2014. And I agree that if they won't budge in locking you in at a price, the fluctuation should not be higher than 2-3%.

    As for cancellation - it's a little tricky. We've seen instances where the venue just shuts down without even notifying the hosts. They basically declare bankruptcy and therefore they don't pay back the hosts' deposits. Usually that's what wedding insurance is for, but I'm not too educated in the insurance aspect.

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  • P
    Just Said Yes May 2015
    Private User ·
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    Thanks everyone. We did ask for clarification on the food price fluctuation. Your ideas about a percentage increase or clear price ranges is great.

    I don't think it's too much to ask for a refund if they cancel our event even in the event they go out of business. They are asking for us to paid in full if we cancel.

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  • Anisea
    Master July 2014
    Anisea ·
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    The refund clause is for events like the building burns down and they cancel your wedding. You canceling your wedding is normal, my venue has the same clause, if we cancel the day before, there isnt a refund unless one of us dies, or fh gets deployed.

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  • Lori
    Master June 2015
    Lori ·
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    I'm also in law school, so I feel you on the negotiating side of things. I looked at venues that did the same thing with price fluctuations, but the one I settled on said that if they did change prices, it wouldn't be by more than $1 per person, so really not that bad.

    The whole cancellation thing feels weird to me. Really, they reserve the right to cancel upon notice? For any reason? I would want more info on that--like could they cancel the day before as long as they told you? Don't feel bad for trying to negotiate. Most likely they just have a form contract that they use for every couple. I wouldn't be surprised if the event manager needed approval to change the terms. But it certainly is worth asking about!

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  • Lori
    Master June 2015
    Lori ·
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    @Anisea, many contracts have an "act of God" clause saying the venue can't be required to perform its side of things (holding the wedding) in case of fire, natural disaster, etc. That normally covers the situation you're talking about.

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  • Future Mrs.Whitaker
    VIP August 2014
    Future Mrs.Whitaker ·
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    You're pay X amount for this venue. If they cancel you should be able to take your money elsewhere. Money that is NOT unlimited (I assume since you're a law student, lol)

    I would clarify what this "cancellation" could be and make sure anything beyond "acts of God" is grounds for a refund.

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  • DC Julie
    Super October 2014
    DC Julie ·
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    You are right to review everything thoroughly. I deal with hotel contracts for work, so I was familiar with some of the language for our venue. But, I had an industry expert review it to be sure I wasn't missing anything.

    F&B - They are entitled to state that costs might change; however, there should either be a deadline to lock-in prices (i.e. 6 months out) or a max % of fluctuation in prices. Our entire package is included in our contract and it states that they must make us aware of any changes in food price, gratuity (a big one) , and tax 6 months in advance.

    Completely agree with the others about the venue cancelling. The venue is justified in having an impossibility clause. However, this clause should be limited to "acts of God, war, government regulations, disaster, strikes, civil disorder... " If it is more vague than this, then I would ask them to rework it or state a refund policy. They should not be able to cancel for reasons other than impossibility.

    If you are booking with a newer venue, or a small venue where the risk that it will close or transfer ownership is higher, I would pay everything with a credit card so that you could claim fraud if something happens.

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