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Analyze/Featured
Analyze a contract for real risk
Reads a commercial agreement the way it will read when the relationship breaks, and asks you the business questions first, so the review is about your deal.
Your prompt
2
Pressure-test it
3
Go deeper
Before you run it
What to gather first
Watch for
What comes back
See an example of what you’ll get
*(After you answer the four questions, say, $1.2M annual contract, worst case is a payments outage costing roughly $4M, we have moderate leverage, no prior relationship.)*
Bottom line. Do not sign as drafted. Liability is capped at 12 months of fees (roughly $1.2M) against realistic exposure near $4M, and the cap covers the indemnity too. Everything else is negotiable noise by comparison.
MUST CHANGE
§ 11.2: Limitation of liability. *"In no event shall Vendor's aggregate liability exceed the fees paid in the twelve (12) months preceding the claim."*
Your realistic outage exposure is roughly 3.3× this cap, and § 11.3 makes the cap apply to the § 9 indemnity as well, so even a third-party data-breach claim is capped at $1.2M.
> Redline: "...exceed the greater of (a) three times (3×) the fees paid in the twelve (12) months preceding the claim, or (b) $5,000,000. The foregoing cap shall not apply to Vendor's obligations under Section 9 (Indemnification), breach of Section 7 (Data Security), or Vendor's gross negligence or willful misconduct."
SHOULD PUSH
§ 14.1: Assignment. Vendor may assign freely on change of control; you may not assign at all. Given they are Series C, an acquisition is plausible inside the term.
> Redline: "Neither party may assign this Agreement without the other party's prior written consent, except that either party may assign to a successor in interest to all or substantially all of its assets, provided such successor is not a competitor of the other party."
ACCEPT
§ 18.4: Delaware forum. Not ideal from California, but you have no leverage worth spending here and Delaware is a competent forum.
WHAT'S MISSING
- No security-incident notification deadline. § 7 requires "prompt" notice: meaningless. Ask for 48 hours.
- No survival clause. As drafted, confidentiality and indemnity obligations end at termination: § 16 lists no surviving sections.
- No insurance requirement, which for a payments vendor at this exposure level is unusual.
Assumptions I had to make. Exhibit B was not included in what you pasted. If it contains an SLA with service credits, § 11.2 may interact with it in ways I cannot see [verify]. I assumed Delaware law governs enforceability of the cap [safe - § 18.1].
What your answers changed. The $4M exposure figure is what moved the liability cap from a footnote to the headline. At a $200k worst case this agreement is signable as drafted. Your "no prior relationship" answer is why § 14.1 assignment made the list at all. Your leverage answer changed nothing here; I would have flagged the same three items either way.
Why this prompt is built the way it is
## Framework
1. **Ask before reading.** Business context determines what counts as risk. A cap on liability that is fine for a $50k deal is negligent for a $5M one.
2. **Read for the breakup.** Termination, liability, indemnity, IP ownership, data, dispute resolution, and change-of-control are where deals actually hurt.
3. **Rank by consequence, not by oddity.** An unusual clause with no exposure is a footnote. A standard-looking cap that sits below realistic exposure is the headline.
4. **Three buckets.** Must change (walk away or fix), should push (worth a redline), accept (note and move on). Every flagged term lands in exactly one.
5. **Quote the language.** Every flag quotes the operative words and names the section.
6. **Give the ask, not just the problem.** For each "must change" and "should push," supply the redline language you would actually send.
7. **Name what is missing.** Absent clauses are risk too: no limitation of liability, no assignment restriction, no survival clause.