Catering Contract

The main difference between an employment contract and a Catering Contract is that the caterer is not an employee but rather an independent contractor. However, there are occasions where it can be challenging to discern the difference. This usually happens when there is a dispute over the skill level required for the job and who gets to decide how long the work will take. Also, the IRS and the relevant state’s department of finance and taxation may treat these contracts differently.

The "Notice" refers to when the caterer or the client wishes to cancel the agreement before the term specified in the contract is up. On the part of the client, this means having adequate time to find another catering company. Usually, the notice period is much shorter than that of an employment contract.

Both parties can agree on the payment method and frequency. For one-time events, a caterer may negotiate the price per plate and even the number of personnel needed for the event. All of the relevant details regarding compensation should be clearly specified in the contract. And you can add "Additional Compensation" clauses as well.

An independent contractor uses the IRS’s Form 1099 to report income. This is used by all independent contractors, including Uber drivers and construction companies, not just the food service industry.

Generally, this clause specifies that all of the materials developed as a result of fulfilling the contract shall belong to the client. As is the case with a typical Catering Contract, this means that the client has ownership over all the food and drinks delivered. In addition to that, it also explains that the caterer is not responsible for any damage that happens to the food and beverages for the duration of the contract.