What Needs to be in a Cancellation or Rescheduling Agreement?
Every client interaction you have is part of a negotiation. That does not mean there is a conflict or that it is a battle, but that you and your client are working together to navigate a tricky situation.
We are hearing more and more speculation about the possibility of a second wave of the pandemic in the fall. This means there is a chance your client will be moving their wedding or event date, again. As a wedding pro, you know that even in normal circumstances this is an emotional time for your clients. Now, with the added uncertainty, it is more important than ever for your clients to be able to trust you.
Why should you enter into a rescheduling agreement?
We want to build trust and incentivize our clients to want to work with us moving forward.
By signing a rescheduling contract, you and your client are agreeing to cancel the original agreement, discussing which aspects of the original agreement will be carried over to the new agreement and how those changes will be addressed moving forward.
What to include in a rescheduling agreement?
What is this contract “contemplating”; ie, what contract is it negating?
State the title and date of the previously executed agreement.
Conditions Precedent
Arguably the most important provision. Clearly state what both parties are agreeing to by entering into the rescheduling agreement. State the conditions necessary for this rescheduling/cancellation to occur. For example:
what date are you rescheduling to?
Will any money be exchanged (ie, refunds, or rescheduling fees?)
How many times may a client reschedule?
Must the rescheduling be signed along with a new contract (the answer should be yes)?
When must these terms be agreed to?
How the initial deposit or retainer will be handled. *Note: In many client contracts there may be wording that payments are “non-refundable and non-transferable.” By offering a refund or transfer, you may be in breach of your own contract. In the conditions precedent, state any transfers or refunds you will be making.
How any payments that have already been paid will be handled and what the payment schedule is moving forward
Confidentiality provision
In short, you don’t want your clients publishing your agreement to the world- you will likely have negotiated each individually.
Non-disparagement clause
The client cannot sign this agreement, and then go and slander you online.
Mutual Release
This releases both parties from the previous agreement and limits BOTH parties’ liability to one another.
After signing the rescheduling agreement, you can enter into a new contract with your clients. This provides you the opportunity to add additional, coronavirus-related provisions to your new contract, such as a plan of action in case the date will need to be moved again. Anytime you add additional language to a contract, it is important to make your client aware of the new provisions.
In the case of a cancellation, it is important to have a cancellation agreement that clearly releases both parties from the contract. A cancellation or termination agreement has the same provisions listed above
What to include in a cancellation agreement?
This provision identifies the original agreement that is being terminated. State the title and date of the previously executed agreement.
Conditions Precedent
Clearly state what both parties are agreeing to by entering into the cancellation agreement. Think of this provision as a discussion between you and your clients. The conditions precedent provision is where you will clarify what will happen with the deposit or retainer, any additional payments, and all other terms that need to be addressed. This may include:
If there will be a cancellation fee and the amount
How the initial deposit or retainer will be handled. *Note: In many client contracts there may be wording that payments are “non-refundable and non-transferable.” By offering a refund or transfer, you may be in breach of your own contract. In the conditions precedent, state any transfers or refunds you will be making.
Which payments are still owed, which will be refunded, etc
3. Confidentiality provision
In short, you don’t want your clients publishing your agreement to the world- you will likely have negotiated each individually
4. Non-disparagement clause
The client cannot sign this agreement, and then go and slander you online.
5. Mutual Release
This releases both parties from the previous agreement and limits BOTH parties’ liability to one another.
For more information on rescheduling and cancellation agreements, go to the webinars below:
