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One Contract Clause Every Event Planner Needs

One of the most overlooked protections in hotel and venue contracts is a Frustration of Purpose clause.

This free resource provides a professionally written sample clause so event professionals can understand how this protection works, when it applies, and why it should be separate from force majeure language.

What Is a Frustration of Purpose Clause?

A Frustration of Purpose clause allows a party to exit a contract when an unforeseen event disrupts the core reason the agreement exists.

Even if performance is still technically possible, this clause applies when circumstances make fulfilling the original intent of the agreement meaningless or impractical, and neither party is at fault.

Why This Clause Is Important

A properly written Frustration of Purpose clause helps event professionals protect their contracts when outside factors change the foundation of an event.

This clause can apply when:

  • Government actions or legislation restrict the event’s purpose

  • Discriminatory regulations impact participants

  • Industry or regulatory changes eliminate the reason for the event

  • The event no longer makes sense, even if the venue remains usable

Sample Frustration of Purpose Clause Language

How to Apply This Clause Correctly

When using a Frustration of Purpose clause:

  • Clearly state the purpose of the agreement

  • Define triggering events specific to your event and audience

  • Include notice requirements and refund language

  • Keep this clause separate from force majeure provisions

  • Use it when performance may still be possible, but the event’s purpose is defeated

Pro Tips and Common Red Flags

  • Do not rely on courts to apply frustration of purpose automatically

  • Clearly distinguish this clause from force majeure

  • Define who group participants are and what protections apply

  • Customize triggers based on industry and event risk

Real World Example

A nonprofit organization booked a venue for a conference focused on LGBTQ plus legal advocacy. After new legislation restricted the event’s purpose, the organization invoked the Frustration of Purpose clause, terminated the contract, and received a full refund without penalty.

Quick Checklist Before Using This Clause

  • Is the event purpose clearly defined

  • Are triggering unforeseen events specified

  • Are relevant regulations included

  • Does the clause allow termination without liability

  • Are refund and notice timelines defined

  • Is the clause separate from force majeure language

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