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Worked example · fictional document

SaaS renewal (order form + terms)

An annual renewal with a 3-year auto-roll, a 12% uplift and permission to train on your data.

Read the source document
ORDER FORM AND SUBSCRIPTION TERMS — SAAS PLATFORM (SAMPLE, FICTIONAL)

Vendor: Cascade Analytics. Customer: the undersigned. Annual subscription fee: $96,000.

Term and renewal. This agreement renews automatically for successive 3-year terms unless Customer gives Vendor 120 days' written notice before the end of the then-current term.

Price. Vendor may increase the subscription fees by 12% each year on the anniversary date.

Data. Vendor may use Customer Data to train and improve its machine learning models and products.

Service levels. Vendor targets 99% monthly uptime. Service credits are Customer's sole and exclusive remedy for any downtime.

Liability. Vendor's total liability under this agreement shall not exceed the fees paid in the prior 1 month.

Changes. Vendor may modify these terms at any time by posting an update on its website.

Fees. All fees are non-refundable and payable regardless of use.

Termination. Vendor may terminate this agreement for convenience at any time.

Read as: SaaS / vendor / commercial contract

Annual price increase (12% per year) is the sharpest issue — uncapped or high annual uplifts compound quickly.

1 deal-breaker5 major3 minor3 missing

16 clauses read · rulebook v1.0 · written from the customer's side · see every rule

What this is, and isn't. The instant check recognises common clause patterns and judges the numbers in them against market norms. It doesn't understand every wording — an unusual clause can slip past it, so a clean result is not a clean bill of health. It isn't legal advice; use it to know what to question and what to ask for.

Clauses to negotiate

Deal-breaker

Annual price increase

12% per year
From your document: Vendor may increase the subscription fees by 12% each year on the anniversary date.
Why it matters
Uncapped or high annual uplifts compound quickly.
What's normal
Increases capped at CPI or 3–5% per year are customer-friendly; above 7% is aggressive.

Ask for

Cap annual increases at the lesser of CPI or 5%.

Major

Auto-renewal

4 months notice, 3 years renewals
From your document: This agreement renews automatically for successive 3-year terms unless Customer gives Vendor 120 days' written notice before the end of the then-current term.
Why it matters
Auto-renewal with a long notice window locks you into another term if you miss a date.
What's normal
Renewal terms of 12 months or less with 30 days' notice, and a reminder from the vendor, are customer-friendly.

Ask for

Cut the notice window to 30 days, cap renewals at 12 months, and require the vendor to send a renewal reminder.

Major

Use of your data for AI / product improvement

vendor may train on your data
From your document: Vendor may use Customer Data to train and improve its machine learning models and products.
Why it matters
Your confidential data may be used to build the vendor's product — and, indirectly, your competitors'.
What's normal
Vendors should use customer data only to provide the service; training rights need explicit opt-in.

Ask for

Add: 'Vendor shall not use Customer Data to train or improve any model or service except for Customer.'

Major

Unilateral amendment

one-sided amendment
From your document: Vendor may modify these terms at any time by posting an update on its website.
Why it matters
If the other side can rewrite the contract at will, every other protection in it is provisional.
What's normal
Amendments should need both parties' written agreement.

Ask for

Amendments require mutual written consent.

Major

Termination for convenience

one-sided
From your document: Vendor may terminate this agreement for convenience at any time.
Why it matters
If only the client can walk away, you can lose the rest of the engagement — and the income — with days' notice.
What's normal
Termination for convenience should be mutual, or paired with payment for work done plus a kill fee (commonly 15–30% of the remaining fee).

Ask for

Make it mutual, or add payment for all work performed plus a kill fee of 25% of the remaining fee.

Major

One-sided termination

vendor-only
From your document: Vendor may terminate this agreement for convenience at any time.
Why it matters
If only the vendor can walk away, you may lose a system your business depends on with little notice.
What's normal
Termination for convenience should be mutual, with a long notice period and transition assistance.

Ask for

Make it mutual, with 90 days' notice and transition assistance.

Minor

Service levels and remedies

99% uptime
From your document: Vendor targets 99% monthly uptime.
Why it matters
Credits that are your 'sole and exclusive remedy' cap what you can recover for downtime.
What's normal
99.9% monthly uptime, credits scaled to the miss, plus a right to terminate on repeated failures.

Ask for

Add a termination right after repeated SLA misses; credits shouldn't be the sole remedy.

Minor

Limitation of liability

30 days of fees
From your document: Vendor's total liability under this agreement shall not exceed the fees paid in the prior 1 month.
Why it matters
The cap decides how much you can recover if the vendor's failure damages your business.
What's normal
12 months of fees is the usual cap, with carve-outs (uncapped or super-capped) for data breach, IP indemnity, confidentiality and gross negligence.

Ask for

Cap at 12 months of fees; carve out data breach, IP indemnity, confidentiality and gross negligence.

Minor

Minimum commitment / non-refundable

non-refundable / committed
From your document: All fees are non-refundable and payable regardless of use.
Why it matters
Committed spend and non-refundable fees stay payable even if the product isn't delivering.
What's normal
Refunds should be available on vendor breach or SLA failure.

Ask for

Add a pro-rata refund on termination for vendor breach.

What's missing

Protections a reasonable version of this document usually has — and this one doesn't mention.

  • Major

    Data return / deletion on exit

    Nothing says you can get your data back — or have it deleted — when the contract ends.

    Ask for Add export in a standard format within 30 days of termination and certified deletion afterwards.

  • Minor

    Termination for cause with cure period

    There's no route to exit for the vendor's material breach.

    Ask for Add termination for uncured material breach after 30 days' notice.

  • Minor

    Price-increase cap

    Nothing limits how much the vendor can raise prices at renewal.

    Ask for Cap increases at the lesser of CPI or 5%.

How the score works

Every problem adds penalty points — a deal-breaker 20, a major issue 10, a minor one 4, a missing standard protection 6 or 2 — and favourable terms offset up to 8. The score halves for every 45 net points, so a very bad document still scores above a merely bad one. Bands: 85+ broadly reasonable, 65–84 negotiate a few terms, 40–64 push back hard, under 40 do not sign as-is. The score is a fast triage number — the findings are the point.

Now turn it into a plan.

The check tells you what to question. The full workspace simulates the other side's pushback, prices your walk-away, drafts your reply, and checks it for risk — with a human gate before anything is sent.