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You, a new event planner for a small planning company, contact a local upscale hotel in a residential area to book their ballroom for an event for 1,500 people to take place in 1 week. When the hotel inquires as to the nature of the event, you tell them that it is a local radio station birthday party; a new client of yours.
The contract for the ballroom space is quickly signed between the radio station and the hotel due to a last minute cancellation. A few days before the event, the hotel's general manager hears a radio station promoting Marilyn Manson who will be providing the entertainment for WXYZ's birthday party at his hotel. He immediately calls his sales manager and is horrified. He wants to know if this is true. The sales agent calls you and you reluctantly tell the sales agent that you forgot to inquire about the musical entertainment for the event. The contract is silent about cancellation on the hotel's part. Can the hotel legally cancel the event without incurring any liability?
If the answer is “yes”, what would likely be the hotel's liability, if any, and how could the hotel have prevented such exposure?
If the answer is “no”, what steps do you need to take to help protect the hotel against any upcoming liability?