Risk, Legal, and Ethical Issues: Contracts, Liability, and Conduct
Contracts, liability, and doing the right thing
Legal risk in events clusters in four areas: contracts, alcohol, premises and accessibility, and insurance. A contract needs offer, acceptance, consideration, and capacity; read closely for cancellation, force majeure, indemnification, limitation of liability, deposit and refund terms, and signature authority. A deposit is not automatically liquidated damages - the clause must state that intent and the amount must be reasonable.
Alcohol: know dram shop liability, server training, and age verification; both the host and the caterer can be liable. Premises: ADA accessibility, occupancy limits, permits, fire code, and music licensing through ASCAP, BMI, or SESAC. Insurance: general liability, liquor liability, workers' comp, and a certificate of insurance naming the venue as additional insured.
Traps: assuming force majeure covers mere inconvenience; signing personally instead of for the entity; assuming a waiver eliminates liability for negligence; and confusing ethical lapses (undisclosed commissions, conflicts of interest, inflated guarantees) with legal ones - ethics questions reward disclosure and transparency.
Worked example. A client cancels 10 days out because of a hurricane. With a force majeure clause listing acts of God, the deposit is typically refunded or applied to a rescheduled date. Without one, the standard cancellation schedule applies, and the caterer should document perishable purchases already committed.
Rule of thumb: collect a current certificate of insurance before the event, not after.