10 Does the agreement provide for liquidated Attempt to negotiate away. Liquidated damages (LDs) damages for unused (as opposed to a for cancellation are disfavored; LDs fixed without any cancellation fee or an attrition fee)? reference to probable actual damages is deemed a penalty and is often unenforceable. The NRC may agree to pay a cancellation or attrition fee, but if so it must assert the hotel’s obligation to mitigate damages, with language along the lines of: cancellation fee “Any will be reduced by the amount the hotel receives in the event of another booking for facilities not used by the NRC and covered by this agreement.” 11 Does the agreement provide for If so, that is unacceptable as a penalty. liquidated damages, e.g., for damages, repairs, etc? 12 Does the agreement contain a Generally acceptable. Confer with counsel. “Force Majeure” or of God” clause? These “Acts clauses say that either party may be excused from its obligation to perform in extraordinary events such as war, terrorism, disasters, strikes, etc. 13 Does the agreement provide for Generally unacceptable, unless it’s a benefit customarily complimentary offered in the marketplace. Confer with counsel. 14 Does the agreement include food or Never purchase food or refreshments with appropriated refreshments? funds unless that purchase has been pre-approved by ADM. The purchase of refreshments for meetings and conferences with appropriated funds is usually illegal, and can subject the purchaser to personal liability in the amount of the purchase as well as to administrative discipline and criminal liability.
10 Does the agreement provide for liquidated damages for unused (as opposed to a cancellation fee or an attrition fee)? Attempt to negotiate away. Liquidated damages (LDs) for cancellation are disfavored; LDs fixed without any reference to probable actual damages is deemed a penalty and is often unenforceable. The NRC may agree to pay a cancellation or attrition fee, but if so it must assert the hotel’s obligation to mitigate damages, with language along the lines of: “Any cancellation fee will be reduced by the amount the hotel receives in the event of another booking for facilities not used by the NRC and covered by this agreement.” 11 Does the agreement provide for liquidated damages, e.g., for damages, repairs, etc? If so, that is unacceptable as a penalty. 12 Does the agreement contain a “Force Majeure” or “Acts of God” clause? These clauses say that either party may be excused from its obligation to perform in extraordinary events such as war, terrorism, disasters, strikes, etc. Generally acceptable. Confer with counsel. 13 Does the agreement provide for complimentary Generally unacceptable, unless it’s a benefit customarily offered in the marketplace. Confer with counsel. 14 Does the agreement include food or refreshments? Never purchase food or refreshments with appropriated funds unless that purchase has been pre-approved by ADM. The purchase of refreshments for meetings and conferences with appropriated funds is usually illegal, and can subject the purchaser to personal liability in the amount of the purchase as well as to administrative discipline and criminal liability.
room-setup.docx