CMP Contract Negotiation & Legal Considerations

Question 1

An attrition clause in a hotel contract typically requires the meeting planner to:

Accepted Answer

Pay a penalty if the group uses fewer rooms than the contracted block

Answer

Provide 90 days notice before canceling the event

Answer

Guarantee a minimum food and beverage spend per attendee

Answer

Submit a rooming list at least 60 days prior to arrival

Question 2

A force majeure clause in an event contract serves to:

Accepted Answer

Excuse parties from performance obligations due to unforeseeable events beyond their control

Answer

Ensure the venue provides maximum food and beverage service

Answer

Require the planner to force maximum attendance at all sessions

Answer

Mandate the use of in-house audio/visual vendors

Question 3

In hotel contracting, a 'master account' refers to:

Accepted Answer

A consolidated billing account that centralizes approved charges for the group

Answer

The primary hotel executive overseeing the group's stay

Answer

The lead negotiating contract between the hotel chain's corporate office and the planner

Answer

A loyalty program account that tracks points earned from the group booking

Question 4

An indemnification clause in an event contract is designed to:

Accepted Answer

Protect one party from financial loss or legal liability caused by the other party's negligence

Answer

Increase the contracted room block if attendance exceeds projections

Answer

Ensure the venue indemnifies the planner for all event expenses

Answer

Set maximum liability limits for each party to no more than the contract value

Question 5

When negotiating a hotel contract, a 'comp ratio' or complimentary room ratio typically means:

Accepted Answer

One complimentary room night is provided for every set number of paid room nights consumed

Answer

The ratio of single to double occupancy rooms in the block

Answer

The percentage discount applied to all rooms in the contracted block

Answer

The ratio of sleeping rooms to meeting room space required

Question 6

A cancellation clause in a venue contract typically specifies:

Accepted Answer

Sliding-scale financial penalties based on how far in advance the event is canceled

Answer

The conditions under which attendees may cancel their individual registrations

Answer

The venue's right to cancel the event for any reason with 30 days notice

Answer

Maximum refund amounts for food and beverage deposits only

Question 7

A 'performance clause' in a speaker contract most commonly addresses:

Accepted Answer

Specific deliverables, conduct standards, and remedies if the speaker fails to appear or perform as agreed

Answer

The speaker's right to review audience performance evaluations before agreeing to return

Answer

Audio/visual performance standards the venue must meet for the speaker's presentation

Answer

Financial bonuses paid to the speaker if attendance exceeds a specified threshold