Unlimited Liability in SaaS Contracts: The Clause That Almost Killed Our Startup
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One word in our first enterprise contract could have ended our four-person startup: "unlimited."
The customer sent their own SaaS template, and procurement wanted it back by Friday. In the liability section, their liability was capped at annual fees, while ours was uncapped for any data breach.
- Read the limitation of liability clause before you focus on price
- Check the carve-outs, because one uncapped exception can outweigh the whole cap
- Make sure the cap and carve-outs match what your DPA says
When did you last actually read your limitation clause? We now run every agreement through LEGALDIGM first to flag clauses like this across GDPR, DPAs and SaaS terms, with sources.
#SaaScontracts #liabilitycap #databreach #enterprisecontract #GDPR #DPA #startuplegal #contractreview #riskmanagement #LEGALDIGM
Informação jurídica, não aconselhamento jurídico.
