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Meeting planners familiar with the usual terminology in domestic hotel contracts can be taken aback when reviewing a contract for a hotel in Mexico, Europe or Asia. Assuming that it's written in English, the translation itself can create novel wording. It is important to make sure that you check each line for inadvertent distortions of meaning. Language challenges are only the beginning, since it is often more difficult to negotiate changes to international contracts. Given such limited flexibility, it is helpful to have some tips on reviewing high priority basic terms that can have unique aspects in the international context.
- Currency. Which currency are figures quoted in? (If not stated, currency is assumed to be that of the country of origin.)
- Rates. What is included in the rates? If meals are included, specify which meals and how extensive (continental or full breakfast?).
- Payment. Is payment expected to be made in US or local currency?
- Deposits. Deposit schedules are often more onerous and it is common for most charges to be due in advance. If the hotel is unable to perform, there could be a risk of losing deposits, which can be prevented through use of an escrow account.
- Function Space. Be aware that these terms are often intertwined with terms for sleeping rooms so be sure to review the language carefully for fairness and clarity. Also, be aware that meeting space typically has a charge and is not waived due to guest rooms blocked or utilized.
- Attrition. A separate clause is less common in international contracts since payment is more commonly required up front. Sometimes attrition is lumped with cancellation as "canceled rooms," so review the terms carefully for fairness and clarity.
- Group Cancellation. Make sure that there is a cancellation clause, ideally based solely on lost room revenue. If there will be no charge for full group cancellation, it should be clearly stated.
- Hotel Cancellation. Read the contract carefully to be sure there are no "wild card" terms stating the hotel can unilaterally cancel at will, for example. The hotel should be able to cancel only upon mutual written agreement or as provided for in the contract, usually solely in the case of Force Majeure.
- Mitigation. The contract is not likely to offer credit for resold rooms for attrition or cancellation so include a simple statement to making that provision.
- Force Majeure. Include a mutual clause, as broad as possible, that will allow for excuse of performance for unforeseen emergencies. This will help to protect your deposits.
- Attendees with Disabilities. State that the hotel will abide by applicable law for that country. Expect that the laws will be quite different from what you expect with the ADA.
This list focuses on features that may differ from domestic contracts. Keep in mind that, as with all contracts, all terms are theoretically negotiable and the object is for both parties to reach agreement.
(Note: This information is not intended to be "legal advice." A qualified attorney should be consulted to review all contract issues.)
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