Monday, December 3, 2007

Association pre-nups and weathered relationships

An association holds holiday function with an affiliated organization. Association signs contract guaranteeing space and food payment for event. Snow raises attendance concern, but significant number already at facility. Affiliated organization cancels though event only few hours away. Says will pay limited portion of agreed amount, cancels DJ they contracted, and sends email to their attendees saying not to attend (due to weather) without including mention function still happening. What happens when parties differ on whether or not to cancel?

Because of historic relationship, the organizations didn't have a written agreement stating terms for either party to cancel, especially when only one signs facility contract.

It's extremely easy to decide a long-standing relationship might not need formal agreement. They do - especially when thousands of dollars and facility agreement involved.

Yes Virginia, there can be a scrooge.

1 comment:

gertiecranker said...

Ouch! A written pre-nup agreement AND cancellation insurance. What a hard lesson....