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ServiceAgreement_v2.pdf — AI Review Active Risk: 62/100

MASTER SERVICE AGREEMENT

This Agreement is entered into as of January 1, 2026 between Acme Corp ("Client") and Vendor LLC ("Service Provider").

Liability shall be limited to $500 per incident regardless of claim type Low cap, and Provider shall have no obligation to provide refunds under any circumstances.

Termination may be effected by either party with 7 days written notice Short term for convenience.

Governing law shall be the State of Delaware. Both parties agree to binding arbitration for all disputes.

Signature required:

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No-refund clause — high risk

Liability cap too low

Short termination window

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MEDIUM RISK — 62 / 100 Clause DNA scan complete

3 Risk Flags Found

HIGH $500 aggregate cap is dangerously low — industry standard is 1–3x annual contract value. Seek minimum $10,000 or 12-month fee equivalent.

MED Full waiver of consequential damages eliminates your ability to recover lost business revenue, reputational harm, or data breach costs.

MED "Regardless of the nature or basis" language is overbroad — typically unenforceable for gross negligence or willful misconduct in most jurisdictions.

2 Improvement Suggestions

Replace fixed $500 cap with: "...shall not exceed the greater of $10,000 or the total fees paid by Client in the twelve (12) months preceding the claim."

Add carve-out: "...except in cases of gross negligence, willful misconduct, fraud, or breach of confidentiality obligations."

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