CCEP Contract Negotiation 2

Question 1

What does an 'attrition clause' in a hotel contract typically address?

Accepted Answer

The minimum percentage of contracted room block that must be filled to avoid penalties

Answer

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.

Question 2

Which negotiation strategy involves making a high initial demand to leave room for concessions?

Accepted Answer

Anchoring

Answer

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.

Question 3

In contract law, what is 'consideration'?

Accepted Answer

Something of value exchanged by each party to make a contract legally binding

Answer

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.

Question 4

What is a 'force majeure' clause designed to do?

Accepted Answer

Excuse parties from contract obligations when extraordinary events beyond their control occur

Answer

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.

Question 5

When negotiating food and beverage minimums with a hotel, which approach gives the planner the most flexibility?

Accepted Answer

Negotiating the minimum as a combined total across all events rather than per-event

Answer

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.

(CCEP) Certified Conference and Events Professional Practice Test

(CCEP) Certified Conference and Events Professional Practice Test

CCEP Contract Negotiation 2