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A catering contract serves to protect both the catering company and the client. It safeguards the catering company against losses from cancellations or last-minute changes in the number of guests or menu items. Specific terms are included to address issues like cancellation policies and deadlines for adjusting guest numbers, with potential financial penalties for changes made after the deadline. For clients, the contract ensures clarity on the services provided, delivery times, and cancellation policies, allowing them to know exactly what to expect from the catering company.