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Catering contracts are crucial for protecting both the catering company and the client. They ensure that the catering company is safeguarded against last-minute cancellations or changes in menu and guest numbers, which can lead to financial losses if food has already been purchased. The contract specifies deadlines for making changes, with penalties for alterations made after that point. For clients, the contract guarantees clarity regarding what services will be provided, cancellation policies, and timelines, ensuring they know what to expect from the catering service. Overall, these contracts establish clear expectations and protections for both parties involved.