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What is a Venue Hire Agreement?

If you own or run a venue and are interested in hiring it out for an event, then you must have a venue hire agreement. This contract will clearly outline all the arrangements’ terms and conditions, helping to establish a clear understanding between you and the prospective hire party.

What is a Venue Hire Agreement?

These agreements detail the rights and responsibilities of each party. Businesses and individuals can use them for various events, including: 

  • parties;
  • weddings; 
  • filming; 
  • corporate events;
  • sporting events; and 
  • concerts.

Usually, the hirer will want to use the venue for a specific purpose and duration. For example, a person might want to hire out a restaurant for a birthday party for three hours on a Saturday night. Alternatively, a business may wish to hire a venue for four hours on a weekday to shoot a commercial advertisement.

Generally, these agreements contain various terms. Let us explore a few of these below.

Description of the Venue

This description would include the available facilities and any areas that may be excluded. For example, a business might have permission to use publicly accessible areas, including the lounge and dining areas, for filming in the venue. However, they may be excluded from accessing the kitchen and bar facilities.

Hire Duration

The agreement should outline the dates and times the hirer can use the venue, including any time allocated for setting up or packing up.

Fees and Payment Terms

The agreement should include the fee for hiring the venue, deposit requirements, and penalties for late payment. Some venues may require a security bond to secure the booking and will refund the bond after the event, provided there is no property damage. Venues can have varying fee schedules depending on the time the venue is hired for. For example, booking a restaurant on a busy Saturday evening might incur a higher fee than booking a restaurant on a weekday.

Cancellation and Rescheduling

The agreement should detail the process and implications for cancellations and rescheduling venue hire bookings. For example, if a party cancels their booking with less than 24 hours’ notice, they could be liable for a fee to compensate for the lost opportunity. However, any such fee must be a genuine pre-estimate of the losses the venue owner might suffer from last-minute cancellations. If it is not an accurate estimate, it may be void and unenforceable.

Equipment

The agreement should include any terms on whether any equipment is included within the hire.

Obligations on the Hirer

The contract can include restrictions or conditions on the hirer. These may include restrictions on the noise level or requiring the hirer to leave the venue in the same condition it was initially in.

Marketing and Promotions

The agreement can set the expectation that the hirer must provide all promotional material to the venue by a particular date for approval. Usually, the hirer would be responsible for any liability issues resulting from its marketing and promotional activities. Sometimes, the hirer and the venue may co-promote an event and set out these terms in the agreement. If the venue hire is for a ticketed event, then terms around ticketing services and payment handling may also be necessary.

Liability and Insurance

There should be a term in the agreement that provides for who will be responsible in case of property damage or personal injury sustained at the venue. The hirer may be required to hold appropriate public liability insurance.  

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Why Would I Need a Venue Hire Agreement?

Having a venue hire agreement in place can perform several key functions, including: 

  • mitigating legal and financial risk by clearly setting out expectations of both parties; and
  • providing financial security against losses from property damage and cancellation of venue hire bookings.

Suppose a company (the hirer) wants to hire a concert venue to host a corporate anniversary party. Both parties enter into a venue hire agreement outlining the responsibilities and liabilities of both parties. The hirer is responsible for promoting the event, while the venue agrees to provide catering services and event space. However, a week before the event, one of the hirer’s event suppliers have not arrived on time, causing them to delay the event by a few hours.

Since a venue hire agreement exists, a clause about delays and cancellations exists. According to the agreement, the hirer is liable to pay an additional fee for the extended use of the venue. The agreement also provides that the venue, at its discretion, can accommodate the delay. Alternatively, they can request that the event be rescheduled if it conflicts with other bookings. 

Without an agreement, this situation could have led to a dispute over who was responsible for the additional costs or the rescheduling. However, because the terms were laid out in the venue hire agreement, both parties knew what to do and avoided a potential dispute.

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Key Takeaways

A venue hire agreement serves as a crucial instrument for both parties involved in the hiring process of a venue. Potential misunderstandings and disputes can be avoided when both parties are aware of the expectations and responsibilities of both parties, and this can lead to a much smoother operation of an event. 

If you need help with your venue hire agreement, our experienced contract 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.

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Elise Willett

Elise Willett

Lawyer | View profile

Elise is a Lawyer at LegalVision with previous experience in Commercial, Corporate and Estate Planning law. She also has experience in the Wealth Management and Finance sector. Elise provides expert advice to commercial clients, particularly startups and SMEs, on a range of commercial matters.

Qualifications: Bachelor of Laws, Bachelor of Arts, University of Sydney, University of Wollongong, Master of Laws, College of Law.

Read all articles by Elise

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