Do I Need a Third Party Payer Agreement?

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dad-pays-for-wedding-contract

Events, especially weddings, can be a family affair.

It’s not uncommon for mom, dad, or Great Aunt Sally to pay for some of the services offered by wedding pros. But if mom and dad are paying, who signs the contract? And…. who is technically the client??

Well, with no agreement to the contrary, Mom/ Dad/ Aunt Sally MIGHT be considered your client. They might have rights. They might NOT. They MAY be able to sue you under the agreement if they aren’t happy with your service. They can PROBABLY demand a refund of a non-refundable deposit …. yikes!! And the couple? Well….. they might not actually be your client AT ALL. 🤯

So what’s a wedding pro to do?

One way to do it: You want to have a third party payer sign what is called a “third party payer addendum” (NOTE: Sometimes, you’ll see “Payor”— that’s acceptable as well).

Why? This document specifically sets out that the third party— mom, dad, Aunt Sally — is only paying the bill. They have no rights under the contract with you and the Agreement between you and the couple. They are paying as a GIFT to the couple, and not to get into a contract with YOU.

That third party payer is agreeing “Hey, I’m not the client, but I agree to pay for this.”

And if they don’t pay? The couple is still on the hook. So that way, you’re not just up a river without a paddle if mom or dad decides they aren’t paying the bills anymore.

(Note: There’s lots of fancy legal jargon here to talk about “contractual privity,” but I’m giving you the quick and dirty and how it plays out in the real world!)

Here's some examples to illustrate how this all works (also available in the “Who Should Sign My Contract” article!):

  1. You're a wedding planner. The couple comes to you to obtain your services. Get both to sign the contract. Why? You need model releases for both of them. Plus, if they break up, you want to be able to get that money from either one of them (it's called "joint and several liability" in law world, if you're wondering). This could be helpful if one of them leaves the area post- breakup!

  2. You're a wedding planner. The mother of the bride is paying for the wedding, including your fee. You want to make sure you get paid by the mother, but you also want to take instruction from-- and follow the directives of-- the bride/ groom/ couple. Keeping them happy is your priority, after all. Get both the couple to sign the contract, and the Mother to sign a Third Party Payer Addendum. (I linked ours here).

  3. You're a photographer. The father of the groom is paying for your photography services, but the couple is in charge of purchasing the prints. Have the couple sign the contract, and the Father sign the Third Party Payer Addendum.