Hi MonaKittie,
Often people might draw names ahead of the party, and they buy that person a gift. Usually a dollar limit is set. Also, there could be a theme for the gifts as well, i.e., whether they would be funny gifts or serious gifts....Also the ornaments as a party favor is a great idea.
Musical chairs would be interesting....:H
If they are serving booze, you will have the opportunity to watch people potentially get very stupid, as this can be a real tradition at Christmas parties.
Good luck!
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