In a World of Uncertainty, Contracts Are Event Planners' First Line of Defense

Skift

20-05-2025

Event organizers can't control global crises, but they can control their contracts, which are now a critical first line of defense.
Who's on the hook when a big event gets canceled: The planner or the venue? The question is coming up more and more as global instability reshapes the landscape for meetings and events.
Trybe, a women-focused conference, canceled its inaugural May event in Las Vegas, citing pushback against diversity, equity, and inclusion. The Air Force canceled its 2025 Life Cycle Industry Days conference in March. The Georgia Public Health Association canceled its 2025 conference in February. These are just a few cancellations tied to the political shift. Industry leaders expect more.
Airtight contracts have never been more important.
In addition to a solid contract is a clearly stated 'purpose of the event,' said Heather Reid, independent event planner, event contract expert, and founder of Planner Protect Inc.
This is a summary outlining objectives, audience, and programming. 'If the primary specified success factors have been prevented from being achieved for reasons beyond the control of the event organizer and/or the supplier partner, the organizer's legal counsel can reference the summary document to justify termination,' Reid said. 'It sets the foundation for contract clauses to apply if cancellation or disruption occurs.'
Reid shared the following example:
ABC 2026 is the association's flagship event. It includes a two-day educational conference, tradeshow, and off-site evening events. An annual event, it gathers association members who are healthcare professionals and their families, ABC staff and families, and sponsors and exhibitors. The conference is financially reliant on revenues generated from sponsorship, exhibitor fees, and attendee registration fees. It's not viable if any of these revenue sources are significantly compromised.
Continuity, rescheduling, cancellations, and alternative arrangements must also be clearly defined in contracts.
Build in Flexibility or Pay the Price
Jonathan Howe, legal expert, president, and founding partner of Howe & Hutton, urges planners to prepare for disruptions. He recommends adding 'frustration of purpose' clauses. They excuse a party from contractual obligations when unforeseen events undermine the agreement's core purpose.
'The event must be outside the parties' control, not due to either party's fault, and not a risk that was assumed when the contract was made,' Howe said.
He also advises including clauses to address price volatility.
But getting those protections isn't easy. 'Hotels and suppliers typically expect groups to bear the risks alone,' said Joshua Grimes, attorney with Grimes Law Offices. 'They push back on 'frustration of purpose' clauses unless planners insist on them from the start — ideally by making them 'must-haves' in the RFP.'
Ultimately, a well-crafted contract, backed by purpose-driven documentation, can be the difference between a manageable disruption and a costly legal or financial crisis.