Contract Risk Explainer

Contract Summary Review Key Obligations: • Deliver project milestones within 45 days • Maintain confidentiality for 2 years after termination • Provide written notice before contract cancellation Potential Risks: • Broad indemnity clause may shift excessive liability • Automatic renewal clause lacks clear opt-out timeline • Payment terms do not define penalties for delayed payment Missing Protections: • No limitation of liability cap • No dispute resolution timeline • Intellectual property ownership language is unclear Risk Matrix: | Clause | Risk Level | Why It Matters | | ------------ | ---------- | ---------------------------------------- | | Indemnity | High | May create unlimited financial exposure | | Auto Renewal | Medium | Could lock parties into unwanted renewal | | IP Ownership | High | Ownership rights are not clearly defined | Questions to Verify: • Who owns the final deliverables and intellectual property? • Is there a maximum liability limit? • What happens if deadlines are delayed? • Are termination rights equal for both parties? Action Checklist: • Clarify liability limitations • Add explicit payment delay protections • Define intellectual property ownership • Confirm termination notice requirements • Review indemnity wording with a qualified legal professional Disclaimer: This review is for informational purposes only and does not constitute legal advice. Verify all legal concerns with a qualified attorney before signing.