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What is a venue hire agreement?
A venue hire agreement is a contract used when a person rents a place owned by another for the purpose of hosting an event. It outlines the terms that will govern the use of the venue such as the responsibilities of the owner and the obligations to be followed by the person who will rent the venue. It highlights the conditions imposed by the owner as well as the consequences of not following those conditions.
Whenever a place is used for a party, gathering, or a ceremony, it is important to have a written agreement to help ensure that everything is in place before the event. In case there is a dispute or there is any damage to the venue, a venue hire agreement will be necessary to settle the issue.
What are the key clauses in a venue hire agreement?
To protect the rights of the owner and the hirer, the following clauses must be included in the venue hire agreement:
Parties – Who is the venue owner and who is the party requesting to rent the venue?
Venue – The venue hire agreement must clearly describe the venue and indicate its address or location. It must also state the accessible areas as well as the areas restricted from the attendees.
Time and Date of the Event – Since most venues are rented by different hirers at different schedules, the time and date when the venue will be used must be specified to ensure that the venue will be available during the event.
Purpose – Defining the purpose of the event ensures that the venue will be used solely for the kind of event agreed upon by the parties.
Payment – The amount to be paid by the hirer must be indicated in the agreement to avoid any disputes regarding the price after the event.
Payment Schedule – The terms by which payment will be made must be included in the venue hire agreement. If payment will be made on an installment basis, the agreement must provide for the owner’s policy for late payments. Is interest charged on late payments?
Deposit – Most owners require hirers to pay a deposit which is usually deducted from the full payment after the event. The agreement should specify what the deposit amount is, when it is payable, and what happens if the deposit is not paid on time (is the venue hire cancelled?)
Refund Process – where a deposit is payable the venue hire agreement should set out what are the refund terms in the circumstances that the client wants to (or needs to – think COVID) cancel the event? Will they get all their money back or a percentage of it?
Security Deposit – Security deposits are usually required to be paid before the event as a security deposit gives an owner some comfort that if a hirer causes damage to the location or equipment/fittings/machine/items at the location then the client will be liable to make good the damage (using the security deposit). So the venue hire agreement should clearly set out the circumstances where client is responsible for rectifying damage – generally if they cause the damage they should pay to rectify the loss or damage caused. If there is no damage to the event then the agreement should specify when the security deposit should be repaid to the hirer.
Responsibilities of the Owner – The owner must ensure that the venue will be available in good condition to the hirer during the scheduled time and date. The inclusions/equipment/items at the the location which form part of the venue hire, if included in the agreement, must be ready for the event. If additional services will be provided by the owner such as catering and cleaning services, they must be listed in the venue hire agreement.
Obligations of the Hirer – The hirer must promptly pay the agreed price for the use of the venue. He or she must guarantee that the venue will be used exclusively for the purpose specified in the agreement. The rules, conditions, and restrictions that will govern the use of the venue as well as the properties of the owner must be indicated in the venue hire agreement. The agreement must also specify the obligation of the hirer for damages caused by any of the attendees.
Inclusions – The venue hire agreement must list if there are furniture and equipment that will be provided by the owner for the event. It must also indicate any additional services for which the owner will be responsible for as agreed upon by the parties.
Liability of the Parties – The venue hire agreement must indicate the liability of a party in case of breach of contract or failure to perform one of the obligations listed in the agreement. The rights of the aggrieved party must also be specified in the agreement.
Health and Safety – The venue hire agreement may set out some health and safety requirements that attendees must follow when hiring the venue (e.g. social distancing of attendees, during COVID, must be maintained).
Insurance – Some owners require hirers to obtain insurance policies for any damage or loss that may happen during the event, but this is not common.
Liability for Damages – Before the event takes place, the parties must agree on who will be responsible for damages caused in relation to the use of the venue.
Cancellation Policy – The venue hire agreement must provide for the policy in case the event is cancelled. Any payments to be made or refunded as a result of the cancellation must be specified in the agreement. The agreement may also indicate certain conditions that can give one of the parties the right to cancel the agreement.
Limitation of Liability – The limitation of liability clause limits the amount that a party may be liable for under the agreement or specifies the circumstances in which a party cannot be held liable for damages or losses incurred by the other party.
What happens if I don’t put in place a venue hire agreement?
If there is no venue hire agreement between the owner and the hirer, there may be misunderstandings regarding the terms of the use of the venue. One of the parties may renege on his or her responsibility since it is not stated in a written contract. It will also make dispute resolution difficult because the rights and obligations of the parties are not specified.
Do you need help with writing a venue hire agreement? Call us at 1800 355 455 or fill in the form below.
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