The ABCs of Legalese

As a third and final installment in our series on commonly used legal terms, we address the last few that may arise in hospitality-related matters. Remember that these definitions are general, and that in every case how the law applies depends on the specific circumstances.



Performance

The legally correct term for "attrition." If one party to a contract fails to fully perform its obligations, it can be required to pay the other party damages for partial breach of the contract.



Quantum Meruit

Literally translated it means "as much as he deserves." Even in a situation in which there is no written contract or when there is a problem enforcing it, a court may award an injured party the value of what he gave to the other. For example, if a meeting planner performs services for a group (without a written contract), and then the group uses a different planner at the time of the event, a court might award damages to the original planner to compensate him for time and effort.



Reformation

A court's ability to change the terms of a contract to meet the intentions of the parties involved or to conform to the law. When parties make a mutual mistake in drafting a contract, or when there is one or more clauses that have legal problems, the court may rewrite the contract to accurately reflect the agreement of the parties.



Scope of authority

A term that applies to what an agent is allowed to do for a principal. Even if a group (the principal) limits the authority of an agent (the planner) -- such as telling a planner to negotiate a contract, but not sign it -- if the agent acts within what would appear to be a normal scope of authority, the agent can still bind the principal. In other words, since most planners have authority to sign on behalf of their clients, most hotels would be justified in assuming that a planner has such authority.



Temporary Restraining Order

An order of brief duration used to compel someone to do or not do something. Available only in extreme circumstances, it can be used when a party's threat to breach a contract will cause irreparable harm. For example, if a group has reserved a block of rooms for the Super Bowl and learns the day before the attendees are to arrive that the hotel intends to walk them to another property 20 miles away with less meeting space, a temporary restraining order might be available to prevent the hotel from refusing the group.

These are obviously only a few of the many legal terms that may come up in a meeting situation. The best advice, as always, is to have a relationship with a lawyer familiar with both contract law in general and its application to the hospitality business specifically before problems arise. That way you'll be prepared to meet, and hopefully avoid, any legal problems.