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5 Red Flags in Event Contracts You Should Never Ignore

Business Strategy 29 December 2025 5 min read VendorPad Team
5 Red Flags in Event Contracts You Should Never Ignore

You've just received a contract for a £3,000 wedding booking. It looks professional, but buried in the small print are terms that could cost you money or leave you exposed. Here are five contract red flags that should make you pause—or walk away.

After years of working with mobile vendors across the UK, we've seen contracts that range from perfectly fair to downright predatory. The tricky part? The worst clauses often look harmless at first glance. Let's break down what to watch for.

1. Vague or One-Sided Cancellation Terms

This is the big one. You'll often see contracts where the client can cancel with minimal notice and get a full refund, but if you need to cancel (illness, vehicle breakdown, family emergency), you're on the hook for penalties or even the full contract value.

What to look for:

  • Cancellation windows that only favour the client (e.g., "Client may cancel with 7 days notice for full refund")
  • No mention of what happens if the venue cancels or weather makes the event impossible
  • Penalties that exceed your actual costs—some contracts demand 100% payment even for cancellations 60+ days out

A fair contract should have symmetrical terms. If they can cancel within 14 days for a 50% refund, you should have similar protections for genuine emergencies.

2. Payment Terms That Leave You Exposed

"Payment within 30 days of invoice" sounds reasonable until you've already spent £800 on ingredients, driven 90 miles, and worked a 12-hour day. Now you're chasing payment while they've already got their wedding photos.

Red flags to spot:

  • No deposit requirement, or deposits under 25%
  • Final payment due after the event rather than before
  • No late payment fees or interest clauses
  • Payment "subject to client satisfaction" with no objective criteria

For a £3,000 booking, you should be looking at a minimum 30% deposit (£900) on signing, with the balance due 7-14 days before the event. Don't let anyone tell you this isn't industry standard—it absolutely is.

💡 Pro Tip

Always get the final balance cleared before you load your van. Once you've served 200 guests, your leverage disappears completely. The time to sort payment disputes is before the event, not after.

3. Unlimited Liability Clauses

Some contracts include language that makes you liable for essentially anything that goes wrong at the event—even things completely outside your control. We've seen clauses that would make a vendor responsible for "any loss or damage arising from the vendor's presence at the event."

That's terrifyingly broad. If a guest trips near your stall (not on it, just near it), that language could theoretically make you liable.

Watch out for:

  • No cap on liability—your exposure should be limited to the contract value at most
  • Indemnity clauses that cover the client's own negligence
  • Requirements to carry insurance levels that don't exist (we've seen contracts demanding £10 million public liability—most policies cap at £5 million)
  • Language that waives your right to claim against the client for their failures

Your liability should be limited to direct damages caused by your actual negligence, capped at a reasonable amount. Anything broader needs negotiating or walking away from.

4. Exclusivity and Non-Compete Restrictions

Here's one that catches people out: contracts that restrict your ability to work other events. We've seen venue contracts that prohibit vendors from working at "competing venues" within 25 miles for 12 months after the event.

For a single £500 booking, you could be signing away your ability to work dozens of other events. That's not a fair trade.

Restrictions to question:

  • Geographic exclusivity that extends beyond the specific event
  • Time-based restrictions lasting more than the event day itself
  • "Preferred vendor" arrangements that actually mean "exclusive vendor"
  • Clauses preventing you from marketing photos or testimonials from the event

A reasonable exclusivity clause might prevent you from working a directly competing event on the same day. Anything beyond that should come with significantly higher compensation.

5. Scope Creep and "Reasonable Requests"

The most insidious red flag is vague language about what's actually included. Phrases like "vendor will accommodate reasonable requests" or "services to include catering and related duties" are recipes for conflict.

We've heard from vendors who agreed to provide a pizza service for 100 guests, only to have the client expect them to also serve drinks, clear tables, and stay an extra two hours—all because of woolly contract language.

Specificity matters:

  • Exact service hours (arrival time, service start, pack-down deadline)
  • Precise guest count with a cap and overage fees
  • Detailed menu or service description—not just "pizza catering"
  • What's explicitly NOT included (staffing, equipment, cleanup)
  • Process and pricing for changes requested after signing

If the contract says "approximately 100 guests," push back. Make it "100 guests maximum, with additional guests charged at £8 per head." Vague terms benefit whoever wants to stretch them—and that's rarely you.

What To Do When You Spot Red Flags

Finding red flags doesn't always mean walking away. Many clients simply use template contracts they've found online, and they're perfectly happy to negotiate fairer terms. Here's your approach:

  • Highlight specific clauses and explain why they're problematic
  • Propose alternative language rather than just objecting
  • Be willing to compromise on minor points to secure the important ones
  • Get changes in writing—verbal agreements don't override signed contracts
  • Know your walk-away point before negotiations start

The vendors who thrive long-term aren't just good at their craft—they're good at protecting their business. Reading contracts carefully might feel tedious, but it's far less painful than a £3,000 dispute that could've been avoided with 20 minutes of careful reading.

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The Bottom Line

A good contract protects both parties. If you're reading terms that feel one-sided, they probably are. Trust that instinct. The best clients understand that fair terms lead to better working relationships—and a vendor who feels protected will deliver better work.

Don't let the excitement of a big booking blind you to problematic terms. That £3,000 contract isn't worth it if clause 7.3 means you're still fighting over payment six months later.