Contract Negotiation Flashcards
7 cards from real CCEP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Negotiation flashcards as text
What does an 'attrition clause' in a hotel contract typically address?
Answer: The minimum percentage of contracted room block that must be filled to avoid penalties
An attrition clause specifies the minimum percentage of a contracted room block (or food & beverage minimum) that must be consumed, with financial penalties if the group falls short.
Which negotiation strategy involves making a high initial demand to leave room for concessions?
Answer: Anchoring
Anchoring involves setting an extreme first offer to shift the negotiation midpoint in your favor, giving you room to make concessions while still achieving a favorable outcome.
In contract law, what is 'consideration'?
Answer: Something of value exchanged by each party to make a contract legally binding
Consideration is the exchange of something of value (money, services, promises) by each party, which is a fundamental requirement for a contract to be legally enforceable.
What is a 'force majeure' clause designed to do?
Answer: Excuse parties from contract obligations when extraordinary events beyond their control occur
Force majeure clauses excuse one or both parties from contractual obligations when unforeseeable events—such as natural disasters, pandemics, or government restrictions—make performance impossible.
When negotiating food and beverage minimums with a hotel, which approach gives the planner the most flexibility?
Answer: Negotiating the minimum as a combined total across all events rather than per-event
A combined total F&B minimum across all events allows the planner to shift spending between functions to meet the threshold, reducing the risk of attrition penalties on any single event.
What is the primary purpose of including an indemnification clause in an event contract?
Answer: To allocate financial responsibility if one party's actions cause harm or loss to the other
An indemnification clause specifies which party will bear costs and legal liability arising from claims, lawsuits, or damages caused by their own actions or negligence.
A planner is negotiating with a venue that has a 'right of first refusal' clause. What does this mean?
Answer: The planner must give the venue the first opportunity to match a competing bid before going elsewhere
A right of first refusal gives one party (often the planner or venue) the opportunity to match any competing offer before the other party accepts a deal with someone else.