Common Pitfalls in Banquet Hall Contracts: Deposits, Rescheduling, Minimum Spend, Overtime

Banquet hall contracts are mostly standardised, and salespeople will say, "Everyone signs like this." This is true—but standard contracts are drafted by the venue, containing clauses that protect the venue.

You don't need to rewrite the contract; just make sure to clarify the following five points before signing and include verbal promises in the remarks section.

1. Deposits and Cancellations

Deposits at almost all venues are non-refundable. This is hard to negotiate, but you can discuss the "use of the deposit."

Things to confirm:

• Deposit amount and payment time: Typically 10%–20% of the total amount, or a fixed amount (NT$20,000–50,000).
• Whether the deposit is deducted from the final payment: It should normally be deducted. If it's a "retainer" and not deducted, it's an extra payment.
• How force majeure is handled: In cases of typhoons, earthquakes, or government epidemic prevention measures preventing the event, can the deposit be fully retained or refunded? Most venues are willing to include this post-pandemic.

2. Rescheduling is More Important than Cancelling

You won't get your money back from cancelling, but rescheduling is usually negotiable. Include rescheduling conditions in the contract when signing, don't wait until you need to reschedule to ask.

What to include in the contract:

Item	Details to clarify
Number of reschedules	How many times can you reschedule? Usually once.
Notice period	How far in advance can you reschedule for free? Commonly 30–60 days.
Rescheduling fee	Is there one? How much?
New date	Is it restricted to within a few months? How to cover weekday/weekend price differences.
Table price	If rescheduling to a peak date, will the original price be maintained?

The last item is the easiest to lose out on. Originally booked for a weekday lunch at NT$15,000 per table, rescheduling to a Saturday evening becomes NT$22,000, a difference of NT$100,000 for 15 tables. Including a clause like "maintain original table price after rescheduling" is worth negotiating.

3. Minimum Spend: Number of Tables or Total Amount

This is the most commonly glossed-over clause, and the difference between the two methods is significant for organisers.

Based on number of tables: For example, "Minimum 20 tables for this hall." If you have only 16 tables, you must pay for 4 empty tables.

Based on total amount: For example, "Minimum spend NT$300,000 for this hall." If you have only 16 tables but add beverages and decorations, reaching the total amount counts.

Calculating by amount is advantageous because beverages, additional dishes, cakes, and corkage fees can be included. When signing, you can ask, "If my number of tables is insufficient but the total spend is met, is that acceptable?" Many venues are willing, but won't say so proactively.

Also ask:

• How is the empty table fee calculated: Is it the full table price or discounted? Some venues charge 70%–80%.
• Deadline for adjusting guaranteed number of tables: Most venues allow adjustments 3–7 days before the event, with limits (e.g., can only reduce by 10%).

4. Service Charges and Taxes

Whether the 10% service charge is additional is the biggest hidden difference on the quote.

15 tables × NT$18,000 = 270,000
+ Service charge 10%   =  27,000
= Total payable        297,000

When comparing different venues, always convert all quotes to "total price including service charge and tax" before comparing. Some venues quote prices including service charge, some do not, directly comparing per table price will lead to errors.

Other possible fees:

• Venue fee/cleaning fee: Charged on non-holidays or when the number of tables is not met.
• Decoration fee: Is there an additional charge for using the venue's backdrop, lighting, or stage?
• Security deposit: Refunded after the event if no damage, but ask about the refund time (some take a month).

5. Overtime Charges

The likelihood of overtime at a year-end party is over 50%, so this must be clarified.

• How much per hour? Commonly NT$5,000–20,000, depending on venue size.
• What is the billing unit? Some charge a full hour after 15 minutes, others by actual time.
• When does it start counting? Is it "when guests leave" or "when staff completely vacate"? The latter is unfavourable as packing up takes time.
• Is there a free buffer time? You can negotiate for "no charge within 30 minutes."

6. Restrictions on External Vendors

If you plan to hire your own photographer, band, decorator, or interactive service, first ask these three things:

1. Is external hiring allowed? Some venues require using their partnered vendors.
2. Are there entry/cleaning fees? Commonly NT$3,000–10,000, usually negotiable.
3. What time can external vendors enter? Is it the same as your entry time?

The same applies to bringing in food: Cake cutting fees, corkage fees (NT$300–800 per bottle) should be asked in advance. Bringing your own wine for weddings or year-end parties is a common pitfall.

7. Write Down Verbal Promises

Things promised by the salesperson during the venue visit—extra hour for setup, free balloon decorations, waived corkage fee, additional side screen for projection—if not written down, they don't exist. A change of on-site manager or salesperson leaving means these promises don't count.

The method is simple: On the day of the visit, send an email or LINE message to the salesperson:

"Summary of today's confirmations: Entry time 15:00, includes one side screen, no corkage fee, service charge included in the quote. Please reply with corrections if there are discrepancies, thank you."

If they reply, "Yes, that's correct," this conversation is valid.

Final Check Before Signing

• Total price includes service charge and tax
• Deposit amount, whether deducted from final payment, force majeure clause
• Number of reschedules, notice period, fee, whether original table price is maintained
• Minimum spend based on number of tables or total amount; how empty table fee is calculated
• Deadline and limits for adjusting guaranteed number of tables
• Overtime rate, billing unit, when it starts
• Entry time is documented
• Whether external vendors are allowed, any entry fees
• Corkage fee, cake cutting fee
• Verbal promises from the venue visit have been confirmed in writing

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