Event deposits and cancellation: what to check before you sign
Signing an event quote means booking a date, committing teams and often securing a venue months in advance. The deposit and the cancellation terms are rarely read carefully at the time of signing. Yet that is exactly where unpleasant surprises come from. Here is what you need to know.
Regulations and good practice 5 min read Updated on
What is a deposit for?
The deposit confirms the order. For the supplier, it guarantees that the date is genuinely booked. From that moment, they turn down other requests for that day, commit their teams and sometimes incur costs (buying supplies, reserving equipment, hiring a venue). For you, it secures the date and the price stated in the quote.
Based on the proposals from agencies and venues received by companies in Marseille, the deposit ranges from 30 to 60% of the total amount. Some prestige venues ask for more, up to almost the entire hire fee. With us, the deposit is 30%, paid by bank transfer when the quote is signed.
Deposit or “arrhes”: what is the difference?
The two words are often confused, but they do not have the same consequences under French law. Arrhes give each party the right to withdraw: a client who pulls out loses them, and a professional who pulls out must pay back twice the amount. An acompte (deposit) is a first payment on a firm order: it commits both parties, and cancellation is then governed by the contract and the terms and conditions of sale. Between businesses, the contract prevails. So check the term used on the quote and the clause that goes with it.
| Arrhes | Deposit (acompte) | |
|---|---|---|
| Nature | A sum paid with the right to withdraw | First payment on a firm order |
| If the client cancels | They lose the arrhes | They still owe what the contract and terms state |
| If the supplier cancels | They pay back twice the amount | They must deliver or compensate |
| What applies | The legal principle of arrhes | The clauses of the contract |
When and how should you pay the balance?
The balance is usually paid shortly before the event or on the day itself, as set out in the quote. In a company, internal payment processes (purchase order, approval by accounts, bank transfer) can take several weeks. Plan ahead, or you may find yourself in difficulty the day before the event. For any extra hours agreed on the spot, also check how they will be invoiced.
What do cancellation clauses usually say?
Cancellation clauses vary widely from one supplier to another. The most common is a sliding scale: the later the cancellation, the higher the share kept or owed, because the supplier has turned down other dates and incurred costs. Some venues refund the deposit if you cancel early enough, others never do. Our terms and conditions of sale set out our own conditions: read them, as you would those of each of your suppliers, before you sign.
Cases of force majeure (an unforeseeable, unavoidable and external event, as defined by the French Civil Code) can release the parties from their obligations, but the definition is strict. Bad weather or a drop in registrations generally does not qualify. Hence the value of agreeing in the contract what happens in these situations.
Which clauses should you check before signing?
- The amount and payment method of the deposit, and the word used (acompte or arrhes).
- The due date of the balance and the accepted payment methods.
- The cancellation scale: what remains due depending on the cancellation date.
- The postponement terms: can you move the date without losing the deposit, and within what timeframe?
- Changes in numbers: until when can you reduce the number of guests, and how does it affect the price?
- The weather for an outdoor event: who decides on the fallback plan and who pays for it?
- Additional costs: travel, extra hours, booking fees, meals for the teams.
What happens if the number of guests changes?
This is the most common situation, far more than an outright cancellation. Between signing the quote and the big day, some colleagues drop out, others join, and sometimes an entire site cannot come after all. For a DJ or a photographer, the headcount changes very little. For a caterer, a cocktail bar or a venue charged per person, it changes everything. So check the deadline for adjusting numbers, whether there is a minimum charge, and how the difference is calculated either way. Confirm the final headcount in writing, by the agreed date.
How to secure your event from the moment you sign
- Get a detailed quote signed, with the times, the venue, the content of each service and the price.
- Ask for the terms and conditions of sale and read them before paying the deposit: signing the quote often counts as accepting them.
- Keep a written record of every change: a change of time or headcount agreed over the phone should be confirmed by email.
- Keep all deadlines in one place: deposit, balance and headcount confirmation dates for each supplier, in a single spreadsheet.
- Appoint a contact person on the company side, with the authority to approve a change on the day.
Do you need cancellation insurance for an event?
For a major event (convention, residential seminar, gala dinner), cancellation insurance can cover the sums committed if something unexpected happens: severe weather, a key speaker being unavailable, an administrative decision. Ask your insurer or broker, and read the exclusions carefully. For their part, reputable suppliers hold professional liability insurance, which covers damage caused during the service: ask for the certificate.
Questions we are often asked
What deposit should you pay for a corporate event?
Event suppliers usually ask for a deposit of 30 to 60% when the quote is signed, based on the proposals from agencies and venues seen in Marseille. At ADJM Événementiel, the deposit is 30%, with the balance paid before or on the day of the event, as set out in the quote. The deposit confirms the booking of the date.
Deposit or “arrhes” for an event: what is the difference if you cancel?
Under French law, “arrhes” in principle allow either party to withdraw: the client loses the arrhes, and a supplier who cancels pays back twice the amount. A deposit (“acompte”) firmly commits both parties: if the event is cancelled, the contract and the terms and conditions of sale set out what remains due. Always check which term is used on the quote and read the cancellation clause.
More advice
A clear quote, from the start
Tell us about your event: within 48 hours we will send you a detailed quote with the deposit, the payment schedule and the applicable terms.