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Homework answers / question archive / A new event planner for a small corporate independent planning company contacted a local upscale hotel in a residential area to book the hotel's small ballroom for an event to take place in 6 days

A new event planner for a small corporate independent planning company contacted a local upscale hotel in a residential area to book the hotel's small ballroom for an event to take place in 6 days

Law

A new event planner for a small corporate independent planning company contacted a local upscale hotel in a residential area to book the hotel's small ballroom for an event to take place in 6 days. When the hotel inquires as to the nature of the event, the planner tells them that it is a local radio station birthday party; a new client. The sales agent, new to her position, is anxious to book her first piece of business. Due to a last minute cancellation, the contract for the small ballroom space is quickly signed between the radio station and the hotel for the radio station's use in order to host the birthday party.
A few days before the event, the hotel's general manager while driving to the hotel hears a radio station promoting who will be providing the entertainment for WXYZ's birthday party at the hotel and learns the event is open to everyone to attend. The general manager immediately calls his director of sales and is horrified. He wants to know if this is true and why would the sales department book a loud heavy metal rock bank at the hotel when the Southern Baptist Convention is having their huge annual black-tie gala at the hotel during the same time. The band has an incredible following and the ballroom is never going to work for the expected crowd. The radio station's contract is silent about cancellation by either party and in less than 3 days, there will be thousands of people at the hotel for the radio station's birthday party.
1)Is this a valid contract? Why or why not?
2)Assuming it is a valid contract, list at least two (2) options the hotel can take in connection with the contract with WXYZ; and the expected outcome of each?
3)Considering all alternatives, from a business perspective what action should the general manager do to reduce the hotel's liability?
4)How can the hotel avoid this type of conflict in the future?

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