Hotel Operation and Management ─ Contract Design and Legal Risk

Non-standard contracts can be formed under the principle of free will between parties and without violation to imposed laws or public morality. What is worth noting is that along with social and economic changes, business transactions become increasingly complicated. Commercial contracts must emphasize considerations to the characteristics of each industry and while contracts may receive legal standing, if the contents do not adhere to legal assumptions of the contract’s content structure and insists on appropriating laws or judicial precedence to explain or supplement contracts, this may cause a severe rift in laws and practical business models. In non-standard contracts of the hotel industry, what is the operation model of the hotel’s contractual party? How are entrusted operation models reflected in contractual terms, and how are the terms of a contract established? What are the business models and reasoning behind contractual structure? How does the background of operations in the hotel industry affect the formation of the contract’s structure? When a legal dispute occurs, how do judicial courts determine the rights and obligations of the party and how should the courts explain their reasoning under the characteristic pulse of the hotel industry? This paper aims to introduce hotel operations contracts, an area that is lacking in information within the nation. Through study of hotel industry management models in the U.S. and in-depth analysis of unique hotel management contracts and U.S. judicial verdicts, the paper will aim to provide explanation for this nation’s judicial verdicts in cases. The plaintiff’s business model and transaction behavior will be combined to form an explanation most appropriate for actual transactions.