When starting an event planning business, there are a few legal matters to take into account. This article will outline four main points that event businesses often need to consider before providing services to their clients.
Services You Will Provide
When starting your event planning business, you must determine the scope of the services you will provide to your clients. For example, this may include set up, security, food, drinks, and entertainment. Further, you may also consider providing travel to and from the venue.
Accordingly, you should be aware that any service you provide will create an obligation on your business. Even if it is simply organising for a vendor to provide a service at an event, you will take on responsibility for its execution. As such, your agreement with your client must clarify what services will not be provided.
For example, event planning businesses do not always offer catering services. Therefore, you must be clear in your client agreement about whether or not you offer catering in your packages. If you choose to include catering services in your packages, there are a few extra things to consider.
For example, this may include:
- a provision in your client agreement regarding a specific date for guest confirmations;
- how variations to these numbers after that date may incur an invoice payable by the client;
- if you are using an external catering company, whether the catering company will invoice you or the client directly;
- how you will control the food quality to meet any samples or descriptions provided to your client; and
- how you will handle potential allergies and to what extent your liability is limited in the event a guest has an allergic reaction.
Do I Need a Liquor Licence?
Many events will include alcohol service. If it is a formal dinner party, the customer may request to have waiters serve champagne and red wine. Alternatively, if it is a 21st birthday party, your client may want a bar. Regardless of the event type, if you intend to serve alcohol, someone is responsible for obtaining a liquor licence. Of course, if the event is held at a restaurant or bar, then there may be no need to obtain a liquor licence as the premises may have one already.
However, if it is an outdoor event or at any other venue which has no existing bar or liquor licence, either you, your customer or the catering company will need to apply for the liquor licence.
Continue reading this article below the formEvent Cancellation
Some consequences of clients cancelling the service include:
- the loss of any deposit; and
- a requirement to pay for any expense you incur and services you provide up to the date of cancellation, regardless of whether such amounts have been invoiced or not.
You may also wish to consider what will happen if the client cancels due to factors beyond the control of either party, such as the weather.
What You Are Not Liable For
In your client agreement, you should also include disclaimer provisions and clauses that limit your liability. These clauses protect your business if the client makes a claim against you about the services you provide them. They set out what your business will not be liable for and, in any circumstances where you are liable, the maximum amount they can claim from you.
As an event planning business, some situations that you do not want to be liable for may include:
- guests injuries on the event premises;
- a guest having an allergic reaction to the food at the event; and
- the event being delayed due to circumstances beyond your control.
You should disclose any disclaimer or liability cap provisions in your client agreement before entering the agreement.
Additionally, if the arrangement is worth less than $100,000, the consumer guarantees in the Australian Consumer Law will apply. They provide service clients automatic rights and require the services you provide to be provided with acceptable care and skill, be fit for the purpose and be delivered within a reasonable time. You cannot exclude these guarantees from a contract.
Know which key terms to negotiate when buying a business to protect your interests and gain a favourable outcome.
Key Takeaways
It is important that you obtain the proper licences for your event planning business and that your business has a strong client agreement to present to potential clients that clearly outline the parameters of your services, the client’s responsibilities in the arrangement and where your liabilities end.
If you need help with your event planning business, our experienced business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
A liquor licence is a permit allowing you to serve alcohol on the premises. Most bars and restaurants will have a liquor licence. However, as the event planner, you should confirm this.
You can limit your liability through a contractual clause that limits or excludes your liability. This ensures that you are not responsible, or responsible to a capped amount, for any problems that arise causing a loss for the other party.
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