ESA | Week 6 (Legal) Flashcards
Attrition
The difference between the actual number of sleeping rooms picked-up (or food-and-beverage covers or revenue projections) and the number or formulas agreed to in the terms of the facility’s contract. Usually there is an allowable shortfall before damages are assessed. (Week 6)
Cancellation Clause
Provision in a contract which outlines damages to be paid to the non-canceling party if cancellation occurs, due the canceling party’s breach of the contract. (Week 6)
Communication Matrix
Determining what needs to communicated, to whom, who is doing the communication, when and how often, how and why for various communication situations. (Week 6)
Contract
An agreement between two or more parties that creates in each party a duty to do or not do something and a right to performance of the other’s duty or a remedy for the breach of the other’s duty. See Also LETTER OF AGREEMENT. (Week 6)
Contract Addendum
modification to the original document by adding information (Week 6)
Crisis
any event that is, or is expected to lead to, an unstable and dangerous situation affecting an individual, group, community, or whole society (Week 6)
Disaster
A disaster is a serious disruption of the functioning of a community or a society involving widespread human, material, economic or environmental losses and impacts, which exceeds the ability of the affected community or society to cope using its own resources. (Week 6)
Due Diligence
The process of asking reasonable questions to assist in developing a risk-management plan appropriate to the organization and the meeting/event; this also applies to developing a contract for the meeting/event. (Week 6)
Egress
1: the action or right of going or coming out 2: a place or means of going out : exit (Week 6)
Emergency
1: an unforeseen combination of circumstances or the resulting state that calls for immediate action 2: an urgent need for assistance or relief (Week 6)
Event Specifications Guide (ESG)
ESG. The preferred term for a comprehensive document that outlines the complete requirements and instructions for an event. This document is typically authored by the event planner and is shared with all appropriate vendors as a vehicle to communicate the expectations of services for a project. The industry accepted practice is to use the APEX Event Specifications Guide, which can be found at the Convention Industry Council web site. Sometimes called STAGING GUIDE, RESUME. (Week 6)
Force Majeure
An event (e.g. war, labor strike, extreme weather, or other disruptive circumstances) or effect that cannot be reasonably anticipated or avoided. (Week 6)
Indemnification Clause
A contract clause in which one party agrees to pay damages or claims that the other party may be required to pay to another. For example, if a hotel is sued by an attendee that is injured at an event due to the fault of the group, an indemnification clause might require the group to pay back the hotel. Some times the law requires one party to indemnify another even without a specific clause. Generally, the terms of the clause will be followed over the state law. See HOLD HARMLESS. (Week 6)
Mitigate
The efforts taken to reduce or minimize the risks at a meeting/event that have been predicted to have a potential impact on the organization. (Week 6)
Negligence
failure to use reasonable care, resulting in damage or injury to another. (Week 6)
Phone Tree
telephone information system that speaks to the caller with a combination of fixed-voice menus in real time. The caller can respond by pressing phone keys or speaking words or short phrases. These key presses can register information or route calls based on the programmed responses. (Week 6)
Reasonable Prudent Person
an individual who uses good judgment or common sense in handling practical matters. The actions of a person exercising common sense in a similar situation are the guide in determining whether an individual’s actions were reasonable. (Week 6)
Rider
Additional clause in a contract stipulating special requirements. (Week 6)
Risk
expose (someone or something valued) to danger, harm, or loss. (Week 6)
Risk Management
Recognizing the possibility of injury, damage or loss, and having a means to prevent it or provide insurance. (Week 6)
Standard Operating Procedure (SOP)
documented standards, policies and procedures (Week 6)
Acceptance
A requirement for entering into a binding contract. If a contract proposal (offer) is made, it is accepted if the offeree signs the offer as submitted. If the offeree makes any changes to the offer before signing, it is a counter offer, not acceptance. (Week 6)
Act of God
An extraordinary natural event such as extreme weather, flood, hurricanes, tornadoes, earthquake or similar natural disaster that cannot be reasonably foreseen or prevented over which a contracting party has no reasonable control, making performance of the contract illegal, impracticable or impossible, thus the parties have no legal responsibility to continue performance of the contract. See FORCE MAJEURE. (Week 6)
Actual Damages
also compensatory damages. Compensate for actual injury or loss. (Week 6)
Authorized Signatory
A person who is authorized to legally bind an individual or organization to a contract, to sign checks on behalf of an organization, or charge to an organization’s master account. (Week 6)
Cancellation/Interruption Insurance
Insurance that protects a event organizer against financial loss or expenses incurred when contractually specified perils necessitate canceling or relocating a event, or cause a reduction in attendance. (Week 6)
Capacity
Legal qualification, competency, power, or fitness, e.g. a person’s capacity and authority to enter into a contract may be questioned. (Week 6)
Condition of Premises
A contract clause that addresses the issue of the property’s condition and any material deterioration or damage to the facility that occurred between the time of the contract was signed and the commencement of the event. It may provide remedies or procedures to apply in the event of a change in condition. This clause is rarely used for short-term bookings. (Week 6)
Consideration
The inducement to a contract. The cause, motive, price, or impelling influence which induces a contracting party to enter a contract. (Week 6)
Crisis Response Team
An individual or group of individuals who respond to an emergency or crisis for the purpose of managing the situation and identifying and engaging the appropriate resources. (Week 6)
Cut-Off Date
Designated date when a hotel will release any unsold sleeping rooms in a group block and make them available to the general public. The date is typically three to four weeks before the event. See RESERVATION REVIEW DATE. (Week 6)
General Liability Insurance
An insurance policy that provides protection against claims involving bodily injury and property damage to third parties. (Week 6)
Hazard
A source of danger or vulnerability causing concern for the safety and security of individuals or property. (Week 6)
Letter of Agreement (LOA)
Contract. Document outlining proposed services, space, or products which becomes binding upon signature by authorized representatives of both parties. It lists services, foods, beverages, and so forth. (Week 6)
Liability
A legal responsibility for an incident or a monetary responsibility for services rendered. (Week 6)
Liquidated Damages
An amount of money the parties of a contract designate during negotiations for the injured party to collect as compensation upon a specific breach of the agreement (Week 6)
