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A catering contract serves to protect both the catering company and the client. It safeguards the catering company against cancellations or alterations in the number of guests or menu items, which can result in financial loss if food has already been purchased. The contract typically includes a deadline after which changes in guest numbers incur a substantial increase in costs due to additional food orders. For the client, the contract ensures clarity on what services will be provided, including timelines and cancellation policies, offering a clear understanding of the catering arrangements. Overall, it formalizes expectations for both parties involved.