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Acme — Master Services Agreement.pdf

Acme — Master Services Agreement.pdf

2.4 MB · uploading

Section 8 · Indemnification

Vendor shall indemnify, defend, and hold harmless Customer from any third-party claims arising out of Vendor's gross negligence or willful misconduct.

Customer's sole remedy and Vendor's total liability under this Agreement shall not exceed the fees paid in the prior six (6) months.

This Agreement shall automatically renew for successive one-year terms unless either party provides 90 days' notice.

Each party shall maintain commercial general liability insurance with limits of not less than $2,000,000 per occurrence…

Agent

Reviewing for risk…

Agent · Risk review

High

Liability cap below market

6-month limit is well under the industry standard of 12 months.

Medium

Auto-renewal with 90-day notice

Standard renewal window is 30–60 days; this favors the vendor.

Low

Mutual confidentiality survival

Survival period is acceptable but should be documented.

Suggested edit

"…shall not exceed the fees paid in the prior twelve (12) months."

Client email · Draft

Tosarah@acmecorp.com
SubjectMSA review — recommended changes

Sarah,

Quick read on the MSA. Two items I'd push back on before signing — the liability cap (6 months; we should ask for 12) and the auto-renewal terms (90-day notice favors them).

Suggested redlines attached. Happy to jump on a call.

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Risks · 4 flagged

  • Uncapped indemnity
    High
  • Liability cap below market
    High
  • Auto-renewal favors vendor
    Medium
  • Notice period of 5 business days
    Low
  • AI Contract Review

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Risks · 4 flagged

  • Uncapped indemnity
    High
  • Liability cap below market
    High
  • Auto-renewal favors vendor
    Medium
  • Notice period of 5 business days
    Low
  • Contract Review
  • Risk Analysis
  • Due Diligence
  • Document Management

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