Event Contract Cancellation Clause: What You Need to Know

As an event planner, it`s essential to have a well-drafted event contract, which includes a cancellation clause. Cancellations are often inevitable, and having a cancellation clause helps protect the interests of both parties involved.

What is a Cancellation Clause?

A cancellation clause specifies the terms and conditions under which either party may terminate the contract. It outlines the notice period for cancellation, the reason for cancellation, and the consequences of canceling the event.

The cancellation clause should be clear and unambiguous, leaving no room for misinterpretation.

Why is it Important?

A well-crafted cancellation clause will protect both the event planner and the client. If a client cancels the event, the planner can recover costs such as deposits, venue rental fees, and other expenses incurred while planning the event.

Similarly, if the planner cancels the event for reasons beyond their control, the clause protects the client`s interests by outlining the refund process or the rescheduling of the event.

What Should be Included in the Cancellation Clause?

1. Notice Period: The cancellation clause should specify the notice period required for canceling the event. This could range from weeks to months, depending on the nature of the event and the amount of planning involved.

2. Cancellation Reason: The clause should state the acceptable reasons for canceling the event. For instance, cancellation due to natural disasters, pandemics, or situations beyond the control of the event planner.

3. Consequences of Cancellation: The clause should also outline the consequences of canceling the event. For instance, if the client cancels the event, they may be responsible for covering any expenses incurred by the planner or venue, such as deposits or non-refundable fees. Similarly, if the planner cancels the event, they may be required to refund the client`s deposit or schedule a new event.

4. Refund Policy: The clause should detail the refund policy in case of cancellation. This includes information on the amount of the refund, the timeline for processing the refund and any deductions, and fees that may apply.


In conclusion, as an event planner, having a strong cancellation clause in your contract is essential. It protects both you and your clients from financial loss and provides a clear framework for canceling the event if necessary.

Take the time to carefully craft a cancellation clause that is clear, specific, and unambiguous. If you have any doubts or concerns, consult a lawyer or a professional in the industry who can provide expert advice and guidance.