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Hi Claire, we've been sent this agreement by Clearwater Group and need to get it signed by end of the month. Could you take a look and let us know if there's anything we should push back on?
Thanks James, I've gone through the agreement and there are a few things I'd want to discuss before you sign.
The auto-renewal clause is worth flagging. It renews for another 12 months unless you give 90 days' written notice. The limitation of liability is also quite low relative to the contract value. I've marked up a few other points in the redline.
Have a look at the summary in the assistant. It picks up the main points. Happy to jump on a call to walk through anything.
Three things to check:
- ✓Auto-renewal: Renews every 12 months. Easy to miss.
- ✓Liability cap: May not cover your actual losses.
- →IP ownership: Work product belongs to them, not you.
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David Chen
Sarah Mitchell
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9:14 AM — David adds documents
Service_Agreement.pdf
Uploaded by David Chen
This is the contract they sent over. A few clauses near the end don't look right to me — hoping you can take a look before I respond.
9:31 AM — Sarah opens Donna’s review
You
“A few clauses near the end don’t look right to me — can you take a look?”
— David, in #reviewDonna
Service_Agreement.pdf12 pagesCl. 7.3 — Unlimited liability cap.
Standard market for this kind of agreement is liability capped at fees paid in the prior 12 months. As drafted, you’d carry uncapped exposure for any breach. Worth pushing back before you respond.
Service_Agreement.pdfp. 8 · cl. 7.3The unfair advantage
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