Legal Issues for Events
Introduction
Events have become a key component of modern society as evidenced by their increased adoption by different organizations and institutions. The purpose of organizing events varies (Bowdin et al. 2012). One of the core purposes of events is to educate or create awareness on a particular issue. According to Bladen et al. (2012), events are associated with distinct characteristics that entail the fact that they are unique, temporary involve gatherings of people, and often involve the display of ritual. To succeed in delivering an event, effective operational planning practices must be entrenched (Shone & Parry 2004). The legal environment is one of the key components that should be taken into consideration in the operational planning of events (Biederman 2007). Therefore, event managers should not underestimate the significance of the legal environment. Bladen et al. (2012) emphasize that event managers should be abreast of the legal issues associated with events.
As one of the firms in the events industry, Great Events has won a contract to organize a small Fresher’s festival on behalf of Cardiff Metropolitan University School of Management. It is expected that the event will host 200 attendees. As the event manager, this paper details the range of contracts that will be taken into account in planning the contract. The report further evaluates the potential areas of concern which if not addressed may lead to the failure of the event and potential litigation of Great Events.
Analysis
The purpose of taking into account the legal environment is fourfold. First, taking into account the legal environment ensures that the relevant legal interests are taken into consideration. Integration of the legal environment ensures that event managers are successful in avoiding adverse legal consequences (Hill, Shuillleabhain & Clarkson 2016). One of the legal issues associated with planning events entails the establishment of contracts (Balden et al. 2012). With regard to events, Bowdin et al. (2010) define a contract as an agreement that governs the relationship between the event and the respective stakeholders.
To ensure that the event is successfully operationalized, the event manager will take into consideration the element of contract law. Subsequently, a number of contracts will be established. Some of the key contracts that will be considered are discussed herein.
Venue contract
To successfully hold the event, the event manager will identify a suitable venue. However, in order to use the venue, a contract between the venue owners and Great Events will be established. The foundation of the venue contract is to negotiate charges and rates related to the event. One of the key components of the venue contract entails payment terms (Biederman 2012). Balden et al. (2012) emphasize that ‘the venue is often the largest expense of an event budget, so ensuring that the payment is well organized. The venue contract will be comprised of a number of legally binding clauses that will allow the event manager to generate some revenue before meeting the majority of the costs will help prevent cash-flow issues’ (p. 88).
Entertainment contract
The Freshers Festival will be characterized by extensive entertainment. One of the main features of the entertainment will entail live music. Thus, it will be ensured that the relationship between Great Events and suppliers of entertainment such as music bands, DJs, masters of ceremonies, speakers, comedians, and celebrities is governed by a well-established contract. Great Events will ensure that the entertainment contract is extensively evaluated in order to minimize the likelihood of the entertainment contract increasing the cost of the event (Yeoman et al. 2012).
Sponsor and exhibitor contracts
According to Bowdin et al. (2012), ‘sponsor contract covers issues related to quality representation of the sponsor such as trademark and signage, exclusivity, and the right of refusal for further sponsorship’ (p. 336). Another key requirement of the sponsor’s contract entails the requirement for inclusion of the sponsors’ logo on all the exhibition materials (Bowdin et al. 2012). The Freshers Festival will be sponsored by Cardiff Metropolitan University School of Management. Subsequently, a one-off relationship will be established between Great Events and Cardiff Metropolitan University. The event will also be characterized by exhibitors who will be invited by the University. However, considering the fact that Great Events will be responsible for delivering the event, the event manager will ensure that he understands the details of the relationship between the sponsors and exhibitors before agreeing to undertake the event. The purpose of undertaking this aspect is to ensure that the contents of the contract between sponsors and exhibitors are deliverable.
Supplier contract
Supplier contracts refer to the contract issued by the supplier of a product or service (Matthews 2015). Great Events will also entrench a comprehensive supplier contract. Integration of this type of contract will arise from the fact that diverse categories of suppliers will be involved in the contract. Amongst the key suppliers who will be integrated include security, staffing agencies, public relations, and technology agencies, marquee and furniture suppliers, staging suppliers, and suppliers of catering services (Kildow 2011).
Broadcasters’ contract
The event will also be comprised of broadcast contracts. This type of contract will deal with issues related to sound and video broadcasting during the event (Bowdin et al. 2016). The rationale of the broadcast contract is underlined by the fact that the event manager will be required to understand the prevailing rights that are associated with the contract.
Clauses for the event
Blanden et al. (2012) assert that events are governed by clauses, which entail the fixed component of a contract. Clauses define and expound on the terms and conditions that govern the contractual relationship between parties to a contract (Hill et al. 2016). Events are characterized by different clauses that include billing, indemnification, insurance, and acts of God. Considering the legal implications of the different types of contracts that will be established, Great Events will ensure that the requisite clauses are entrenched in the clauses. The type of clauses will differ from one contract to another as expounded herein.
Venue contract clauses
A number of clauses will be taken into consideration in the process of establishing the venue contract as outlined below.
- Cancellation clause; this clause details matters associated related to costs payable and refunds available in the event that the event is cancelled.
- Payment terms; this element relates to deposit and payment schedules.
- Provision of security and personnel, number of personnel required, and overtime rates.
- Venue damage; this clause entails issues related to insurance, licensing and permits, liability issues, and indemnification.
- Attrition clause; this clause outlines the minimum amount that the event owners will pay to cover spending on food, beverage, and space. The purpose of this clause is to caution the event owners against loss that might occur if the target customers do not attend.
- Full detail costs; this clause outlines the total cost arising from the different cost elements associated with the venue such as room hire charges, linen and furniture hire, beverage and food costs, service charges and tips, set-up charges, and taxes.
Entertainment contract clauses
One of the key components of the entertainment contract will entail a non-attendance clause (Jones 2014). This clause will caution the event organizers against problems that might arise from artists not showing up for the event or pulling out of the event at the last moment. By entrenching this clause, Great Events will be in a position to at least ensure some financial remuneration if it cannot succeed in seeking a replacement for the artist. The entertainment contract will also constitute a rider outlining the demands that Great Events as the event organizer will be required to meet. Some of the contents of the rider will include technological requirements such as audio-visual and hospitality requirements such as beverages, food, and rooms. The entertainment contract is also comprised of the exclusivity clause, which entails a provision that limits an entertainer from entering into a contract with another client during the period when the entertainer is expected to hold the event with Great Entertainers. The rationale of the exclusivity clause is to guarantee the event organizers that the entertainer will attend the Freshers Festival (Edwards 2003; Hannan 2003).
Sponsor and exhibitor clauses
The sponsor and exhibitors contract will be comprised of a number of clauses as outlined below.
- Cancellation terms; this clause will relate to the termination of the contractual relationship between the sponsor and exhibitor if the event is cancelled or if the two parties, viz. the sponsor and the exhibitor wish to duly terminate their relationship.
- Length of contract; this clause details the duration within which the sponsor and the exhibitor intend to be in such a contractual relationship.
- Payment terms; this clause will state that the requisite payment will be preferable upon signing the contract.
- Branding on marketing; this clause will outline the issues related to branding the event and ensuring on-site brand presence.
Clause in supplier contract
In establishing a contractual obligation between Great Events and the suppliers, the event manager will take into consideration a number of clauses that include;
- Force majeure; this clause is intended to caution either parties to a contract from legal liabilities arising from failure to fulfill their contractual obligation as a result of unavoidable circumstances, for example, Acts of God and strike.
- Insurance pre-event clause; the event manager is cognizant of the fact that the respective suppliers will incur significant pre-event expenses. Pre-event expenses are incurred immediately after the contract is established. Matthews (2015) emphasize that ‘regardless of when the event is cancelled or why, all the parties should agree to purchase an insurance policy to cover these expenses’ (p.103).
- Termination policy; this clause will outline the legal implications in the event that either of the parties to the contract fails to undertake the requisite contractual obligation.
Clause in broadcasting contract
The broadcasting contract will be characterized by a number of clauses as outlined herein.
- Guarantees; the event manager will assess the possibility of the local council within which Cardiff Metropolitan University is located will be required to pay an extra fee as a result of broadcasting from the area. The event manager will also assess whether it will also be required to seek permission from the local company.
- Merchandising clause; According to Bowdin et al. (2012), merchandising contract entails ‘a clause that mentions the rights to own products originating from the broadcast’ (p. 336).
Potential consequences of not having the contract in place
Factoring the legal environment in organizing and holding events is critical in ensuring that the event is optimally operationalized (Allen 2012). This outcome can be achieved through the integration of diverse event contracts. Failure to incorporate the contracts can result in adverse legal consequences as expounded herein.
Venue contracts are one of the key types of event contracts. In the process of operationalizing the event contract, the event manager will ensure that security is adequately integrated. The rationale for entrenching security is underlined by the fact that it ensures that the attendees of the event are guaranteed a secure festival. One of the critical issues that event managers should take into consideration entails crowd control and management. The rationale for controlling and managing crowds is underlined by the fact that ineffective crowd management practices might result in a tragic outcome. For example, failure to control the entry of attendees into the venue might lead to a stampede, which might lead to injury or loss of life.
The occurrence of a stampede might lead to the incurrence of significant legal costs due to litigations arising from injury or loss of life. One of the notable cases that underline the significance of taking into consideration entails the Glastonbury Festival in 1990 which was characterized by over-attendance. The organizers of the festival were prosecuted for allowing too many attendees to enter the venue. Blanden et al. (2012) assert that ‘event managers need to have a good understanding of the type of event they are staging and how their audience might react’ (p.90). Failure to entrench security as a key component of the venue contract might adversely affect the actualization of the contract.
In addition to the above aspect, failure to entrench the specific components of the entertainment contract might lead to inefficiency in operationalizing the contract. For example, failure to include the exclusivity clause under the entertainment contract may lead to the contracted entertainers failing to attend the event. The contracted entertainers’ failure to attend the event may constitute an unethical issue. This arises from the fact that the Great Event as the event organizers might fail to deliver the intended promise with reference to entertainment. The overall outcome is that a significant proportion of the Festival’s attendees might be displeased with the conduct of Great Events. This might affect the probability of Great Events developing and securing a contract to organize another event in the future. Failure to entrench the suppliers and broadcast contract may also translate into dissatisfaction amongst the attendees. For example, an improperly instituted supplier’s contract might lead to ineffectiveness in ensuring that the requisite supplies for the event such as food, beverages, furniture, and security are not optimally met. This might negatively impact the effectiveness with which Great Events operationalizes the event hence creating dissatisfaction amongst the attendees.
Conclusion
Events have become a key component of the contemporary business environment as evidenced by the growth and development of the meetings, conferences, exhibitions, and events industry. In an effort to exploit the opportunities inherent in the events industry, different events companies have been established. One of the fundamental purposes of organizing events is to create a memorable experience and to educate the attendees. However, to ensure that the event companies are successful in delivering the intended experience, event organizers must take into consideration different components amongst them the level of environment. The legal environment is actualized by entrenching the event contract as one of the key elements in operationalizing the event.
In the process of operationalizing the Freshers Festivals organized by Cardiff Metropolitan University, Great Events will entrench different types of contracts that include the venue contract, entertainment contract, supplier’s contract, sponsors and exhibitor’s contract, and the broadcast contract. The rationale for entrenching these types of contracts is to safeguard the firm against possible litigations that might be instigated by different parties against Great Events. One of the issues that Great Event will take into account in establishing the event contracts entails the integration of the relevant clauses as illustrated above. By entrenching the relevant clauses in each of the contracts identified, Great Events will be able to minimize the likelihood of encountering obstacles that might lead to the event failing to deliver the intended objectives. For example, cancellation of the event due to failure of either of the parties to the event such as sponsors, entertainers, exhibitors, and venue providers might lead to dissatisfaction amongst the target attendees. In addition to this aspect, the organization’s failure to entrench the different contracts outlined might lead to the incurrence of significant legal costs. For example, failure to entrench a well-drafted venue contract might lead to security and safety flaws. For example, a poorly drafted venue contract might lead to ineffectiveness in managing and controlling the crowd hence causing injury due to stampede.
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