Hotel & Motel Management - March 17, 2008 - (Page 10) 10 Sales Clinic IN THE details Contracts limit liability Know what signing means Find out who is authorized Future of electronic contracts H&MM March 17, 2008 | HotelMotel.com www.HotelMotel.com/digital_edition Be careful when signing group contracts n many cases today, sales personnel who sign contracts for group business, booked at most properties large and small, do not understand the ramifications of putting their name on contracts. The whole idea is for anyone to limit his or her potential liability. In putting your name on a contract, it reflects that you are person- I By Howard Feiertag H&MM Columnist ally responsible for the terms of the agreement. It is always best to sign as representative of the property. For example: ABC Hotel (your signature here) As its authorized sales director Of course, it also applies to catering managers, general managers and any other person authorized to sign contracts. Then there is the question of who is authorized. Generally, the law recognizes people, such as sales managers, catering managers and others who have “apparent authority” by nature of the job or duties, to sign the agreement on behalf of the property. This very well may be a minor issue, as I have never heard of a case where a salesperson was Speed up with the world’s fastest setting kitchen and bath sealant. ™ Polyseamseal® SPEED SEAL silicone sealant with EST ™ – enhanced silicone technology – sets 12 times faster than standard silicone sealants. It withstands water contact just two hours after application. Why wait until tomorrow? Use ™ Polyseamseal® SPEED SEAL sealant and shower in two hours. held personally liable in a suit involving a hotel, even though they may have personally signed a contract for a group. Some years ago I was called in as an expert witness on behalf of a hotel property being sued for non-performance of a contract. The sales director of the property who signed the contract also was listed as a major party being held responsible. Although the hotel was found at fault in the case, the sales director was not considered liable. This particular issue of signing contracts also applies to the group planner who signs a contract as a buyer. Right now, there is a very large percentage of group business in hotels being booked by third-party independent planners. From the hotel standpoint, sales personnel involved in these bookings need to be cautious by making sure that the contract is signed properly by a truly authorized representative. They, too, should be signing in the same manner as the property salesperson: as an authorized representative of the group. Further, in dealing with independents, it is best to always make sure they truly represent a particular prospect for business. You can do this by asking them for a letter from the group planner reflecting their representation. Today we are getting involved, to a certain extent, in entering into contracts electronically. It sure looks like paperless contracts are on the way. Some states already have adopted the Federal Electronic Signatures in Global and National Commerce Act, as well as the Uniform Electronic Transactions Act. These laws state that electronic transactions cannot be challenged just because they are executed in an electronic manner. However, both parties to such an agreement have to agree to be bound by it. Check with your attorney on how to get into this if you are interested. hmm@questex.com Howard Feiertag is on the faculty of the Department of Hospitality and Tourism Management at Virginia Polytechnic Institute, Blacksburg, Va. He can be reached at howardf@vt.edu. www.polyseamseal.com © 2008 Henkel Corporation CIRCLE NO. 124 http://HotelMotel.com http://www.HotelMotel.com/digital_edition http://www.polyseamseal.com http://www.polyseamseal.com
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