I have been getting a lot of calls from both small business owners and consumers over the last few weeks about how to handle existing contracts and special events that have been planned for months. Event venues have been particularly hard hit from the coronavirus. As a result of Governor Northram’s executive orders, these event venues have been unable to honor their contracts.Refunds and rescheduling are the two biggest issues right now.

So what do you need to know about how the state of emergency has impacted contracts and event venues?

Virginia’s Executive Orders:

Executive Order 53 and Executive Order 55

There have been several executive orders over the last few weeks, but the most important orders are Executive Order 53 and Executive Order 55. Executive Order 53 was passed on March 23, 2020. This order forced non-essential businesses to disallow gatherings of more than ten (10) individuals and to cease recreational operations. Executive Order 55 was passed on March 30, 2020. This order forced all Virginia residents to stay at home unless they were allowed to leave for certain exceptions.

How Do the Virginia Executive Orders Impact Event Venues?

They close. The effect of these orders is that the vast majority of event venues such as wedding venues and theatres are not currently allowed to provide services as of the date of writing this article. As a result, many of these event venues have begun to offer online services. Some theatres are hosting online movie viewings to bring in revenue. 

This has created problems for event venues with events planned from March 23, 2020 until Executive Order 55 is lifted. There is no current deadline for the order being lifted. Unfortunately, we have no guidance on how long this will remain in place.

As a result, people are calling event venues demanding to cancel these events because they can no longer use the event space.

What Can Small Ev ent Venues and Consumers Do About The Closures?

For the most part, your rights as either a business or a consumer are going to be completed listed in your event contract. There is a clause known as a “force majeure” clause that essentially says what should happen if events spiral out of control. Rights are going to largely be on a case by case basis, so you should consult with a lawyer if you wish to cancel your event or reschedule your event. 

Many businesses opted for an online contract or opted to draft their own contract. As a result, they have weak force majeure clauses. This can create a lot of issues for both consumers and businesses. Another reason for a business to consult a lawyer is to have a new contract drafted to protect from future events such as this.

Either way, it is important for event venues and consumers work together to come up with creative solutions to the problem.