Everything You Need to Know About Third Party Payor Addendums

LAST UPDATED: 3/13/25

Photographers, wedding planners, DJs, and other wedding vendors have the same question: “Who signs the contract when someone else pays?” This is what we call a third-party payor (aka “third party payer”) situation.

You’ve seen it before: You get a message from a couple planning to get married. You have a consultation and you’re a great fit! But then you learn that mom, dad, mother-in-law, or Uncle Jim will be paying for your services. So how do you legally set up your contract?

I’m Paige Griffith, CEO and head attorney of The Legal Paige. I help business owners and creatives tackle their dreams without breaking out in hives. (No more legal mumbo jumbo!)

As an attorney and photographer, I’m constantly asked about who signs the contract when a parent of the couple pays. The main thing to remember here is that your contract changes when you have a third-party payor. 

Let’s talk about how third-party payor agreements help you get paid and have a smoother client experience.

Who signs the contract if a parent pays?

Third parties (such as parents of a partner getting married) should NOT sign your client contract—even if they contribute financially. 

If a parent signs, they gain rights and responsibilities under the contract by the act of paying! Then you have three clients instead of two. This can create trouble during the wedding if the third party starts directing you around.

If ONLY the parent signs the client contract (which they often want to do), you don’t gain critical legal sign-offs from the spouses. For example, you don’t gain permission to use their images through the model release clause.

So instead of allowing the parent to sign, I recommend a third-party payor addendum.

When someone other than the client agrees to pay for all or some of your services, they become a “third-party payor.” (Also commonly spelled “third-party payer.”) This means that they are paying on behalf of your clients but are not your actual client.

For weddings, you’ll be serving the couple on the wedding day, not a mother, father, or any other family member. Even if that family member pays, the spouses are still your clients when it comes to how the event will occur.

Two Fundamentals for Working with Third-Party Payors

For many contracts (especially for weddings) you mainly talk to one person, but you’re serving at least two. And you potentially have other decision-makers involved. To simplify things, here are two steps I highly recommend for service providers.

1. Communicate with Your Clients

To gain clarity, ask these two important questions:

- Is anyone else part of the decision-making process?

- Is anyone else going to help with payment for services?

It is as simple as including these questions in your workflow! 

You can do this by:

- asking these questions during your initial consultation, 

- including these questions in your booking questionnaire, or

- emailing back and forth prior to sending your contract.

Ask these questions for every contractual situation. This helps you avoid payment hassles. You also establish evidence in case of legal issues about the contract later on.

2. Get Your Proper Legal Documents in Place

I always highly suggest that both clients (EACH spouse) sign your contract. (Read more about why two clients should always sign a wedding contract in this article.) And then your clients should also be signing the third-party payor agreement as well as the third-party payor!. 

Next, clearly outline the payment responsibilities of the person paying as part of a third-party payor addendum. We’ll cover this next!

What is a Third Party Payor Addendum?

A third-party payor addendum is a document attached to your client contract. It states that someone other than the client is paying for the services and nothing else. 

This third-party agreement makes it so the couple you’re serving is your client, but the third party (mom, dad, father-in-law, Aunt Emmy, etc.) is accountable for payment. The third party will not be served by you on the wedding day nor receive rights under your contract.

It’s essentially like they are gifting a payment to your clients.

A huge bonus to a third-party addendum is that it clearly outlines the responsibilities of all three parties:

- you (the wedding vendor), 
- the client(s) (the spouses getting married on the wedding day), and
- the third-party payor (the mom, dad, aunt, uncle, etc.).

The clients AND the third party (aka anyone paying who is NOT a client) sign the third-party payor addendum. 

Going back to our example above, if a parent of the couple pays, they sign a third-party payor addendum. By signing, they agree that they will pay the fees and understand that they are not considered a client. 

3 Tips on How to Use a Third-Party Payor Addendum

- A third-party payor addendum does NOT change the original client contract. Like other addendums, it adds information to it. (Read more about contract addendums here.)

- You should not send the original client contract to the third party. A third-party payor addendum is SEPARATE from the client’s original contract and should be treated as such. The addendum can refer to the original contract and include some information from it. However, only the clients will see both the original contract *and* the third-party payor addendum.

- You should let everyone know that the CLIENTS are in charge of wedding event decisions, regardless of who signs the addendum. (It’s the spouses’ wedding, after all, not their mother or father’s.)

A third-party payor addendum helps you clear up who your clients are legally and who’s responsible for payment.

What to Include in Your Third-Party Payor Addendum

Your third-party payor addendum should make the following four points in clear, proper legal language.

1. The third-party payor is NOT your client.

The third-party payor is NOT the client you are serving. Not on the wedding or event day, prior to the event day, or after the wedding day (for all intents of service purposes). They are only signing the addendum for payment purposes. 

2. If the third-party payor doesn’t pay, your clients are still responsible for payment.

If the third-party payor doesn’t make payment, the clients will still be on the hook to pay. You might receive an upfront retainer fee for your service but wait on the rest. This addendum saves you because now you’ve got THREE people to turn to. First, go to the third-party payor, then Client 1, then Client 2. (In legal terms, this is called joint and several liability.)

3. The non-refundable retainer also applies to the third-party payor.

A non-refundable retainer means that if you receive an upfront payment before the event date, the third-party payor can’t come to you for a refund. This is important so that when you book out your calendar for those clients, you can keep the retainer payment even if issues come up or the event is canceled.

4. Your client is the main point of communication (not the third-party payor)

Lastly, your third-party payor addendum establishes your client(s) as your primary contact person(s) for service-related matters. Whether you’re providing photographs, music, or floral arrangements—your main point of communication about services is the clients, not the third-party payor.

If you make changes to your contract that affect payment, you must notify the third party. For example, sending an addendum to change payment terms  if the clients decide to upgrade to a more expensive package and having the clients and third-party payor sign. (At the very least, it’s a good idea to have the third-party payor agree to pay the price change in an email.)

Remember, just because the third party agrees to pay doesn't mean your clients are off the hook for payment liability. All three parties—client, third-party payor, and any co-signers—are jointly and severally liable for the full payment. Meaning, if one party doesn’t pay, you can legally go to any of them for the entire amount.

The good news is, we’ve put together a third-party payor agreement template in our online contract shop. It has all of these terms (and more) baked in for you!

Third-Party Payor Addendum

How to Send a Third-Party Payor Addendum

After customizing your third-party payor addendum, there are a few ways you can have it legally signed. 

Here are a few options:

1. A secure and private customer resource management system (CRM), such as Honeybook, or Dubsado. 

2. An encrypted PDF document tool, such as Adobe.

3. An old-school hard copy.

If you choose the electronic route, make sure your addendum states that electronic signatures are legally binding. This is known as a Counterparts & Facsimile Signatures Clause. (We include this in all of our contracts. You can also purchase a solo Counterparts & Facsimile Signatures Clause à la carte in our contract shop.)

If using a CRM and your system allows it, send the original contract to the clients (not the third-party payor) to sign. Then, once that agreement is signed by both you and the clients, send the addendum. You should send the addendum to your clients and the third-party payor to sign. (Remember, the third party only gets the addendum document!)

If you opt for the traditional paper route, I HIGHLY recommend you scan and save digital copies of your signed documents as well.

Whatever option you choose, keep it consistent. So if your original contract is electronic, the addendum should too. This will help you avoid unnecessary questions if there is a legal dispute later on.

What Happens if the Third-Party Payor Refuses to Sign?

Have you ever offered a parent or a family member a third-party payor addendum, only to have them refuse to sign? 

It certainly raises a red flag when someone flat-out says ‘no’ to signing. So, what options do you have as the service provider? Is it a matter of severing ties with the clients? Should you allow the third party to pay without signing the addendum?

I recommend you immediately step out of the middle of the conflict. 

Reach out to your clients promptly, preferably through a phone call and follow-up email. (Always put it down in writing!) Clearly explain that an individual who is paying, but isn’t the client, needs to sign a third-party payor agreement.

Emphasize to your clients that booking cannot proceed unless:

1. payment is received from the client directly or 

2. the third party signs the addendum. 

While being firm, maintain a respectful tone and acknowledge that this can be a tricky situation. Remember, you shouldn't find yourself in a payment dispute. It’s the client's responsibility to ensure that the third party cooperates or to make the payment themselves.

If you want an email template that gives you the language to handle this situation you can get it in our Little Black Book of Handling Difficult Client Situations.

If the third party continues to be difficult to deal with, but you love the clients, you can try and salvage the relationship. But it's perfectly acceptable to release a client or family member who makes you uncomfortable.

If you decide to bow out, communicate with your clients through email. Express your appreciation for the relationship and explain that you believe it's best to part ways. Remember, there will always be other clients who value your expertise and professionalism. 

I dive more into this topic on Episode 161 of The Legal Paige Podcast: “The Third-Party Payor Is Refusing to Sign… Now What?”

What if You Didn’t Know a Third-Party Payor Was Involved?

Sometimes clients don’t tell you a third party is paying, and you can’t always avoid this. Some CRM systems or online payment platforms don't reveal the payer's identity for security reasons. 

However, if your client service contract is solid, it will still put full responsibility on the clients for payment. That way if the third party’s payment fails or is canceled, your clients are still liable to pay you.

The Legal Paige Take: Third-Party Payor Addendums

So, who signs the contract when someone else pays?

Answer: For services at a wedding, the individuals getting married are your clients, so they sign your client contract. If a parent or someone else pays, they should always sign a third-party payor addendum. (Also called a “third party payer agreement.”) 

As service providers, it's all about protecting our business while keeping our client relationships strong. By making the third-party payor addendum a standard part of your process, you’re not just covering yourself legally—you’re also setting clients up for a smoother experience.

Now’s the time to keep yourself legally legit with our Third-Party Payor Addendum Template!

You can get even more insights on this topic on the go with this episode of The Legal Paige Podcast: Episode 47: Adding Third-Party Payor Addendums Into Your Contracts