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PLAYBOOK TEMPLATES

Hospitality Hotel Contract

A Hospitality Hotel Contract covers management, operation, or branding arrangements in the hospitality sector. This playbook guides negotiation of performance benchmarks, termination rights, and brand compliance.

Default & Remedies

Why This Matters: Clear default and remedy provisions provide structured responses to breaches and reduce litigation risk.

Negotiation strategy

If you're the Owner:

Ensure that the default clauses are clear and provide a reasonable cure period. Consider including specific performance as a remedy to protect your interests.

If you're the Operator:

Negotiate for balanced remedies and ensure that any penalties are proportional to the breach. Advocate for a fair cure period to address potential defaults.

Essential elements

1

Events of Default

Triggers for default occurrence.
2

Cure Periods

Timeframe to remedy defaults.
3

Proportional Remedies

Fairness in remedy application.

Action framework

ACCEPT

Propose edits if the cure period is unreasonably short or if remedies are disproportionate.

EDIT

Reject clauses that impose excessive penalties or lack a cure period.

ADD

Add language to clarify jurisdiction-specific standards or additional remedies.

PRO TIP

Always ensure that default and remedy clauses are tailored to the specific jurisdiction to avoid enforceability issues.

Real-world examples

FAVORABLE

Balanced Default Clause

"An event of default shall occur if any party fails to perform or observe any material term, covenant, or agreement contained in this Agreement, and such failure continues for a period of thirty (30) days after receipt of written notice thereof from the non-defaulting party."
NEUTRAL

Standard Remedies Clause

"The non-defaulting party may pursue any and all remedies available at law or in equity, including but not limited to specific performance, provided that such remedies are proportional to the nature and extent of the default."
UNFAVORABLE

Excessive Penalty Clause

"The defaulting party shall pay a penalty of 50% of the contract value upon any default, regardless of severity."

Alternative scenarios & positions

High-Risk Projects

In high-risk projects, ensure that default clauses include specific performance and detailed cure periods to mitigate potential losses.

Long-Term Leases

For long-term leases, negotiate for extended cure periods and proportional remedies to accommodate unforeseen circumstances.

Cross-Border Transactions

In cross-border transactions, include jurisdiction-specific clauses to address varying legal standards and enforceability issues.

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WEEK 3
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WEEK 4
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