Contract Traps: A Field Guide — Part 2

Short summary

A field guide to hidden traps in big company procurement contracts. Emerging companies face six specific dangers: unilateral policy-change rights, lopsided termination for convenience clauses, change-of-control triggers complicating fundraising, blanket compliance warranties exposing you to unknown regulations, and SLAs disguised as warranties with outsized liability. Critical reading for any founder signing enterprise deals.

• •Unilateral policy-change clauses let big companies alter terms after signing without notice
• •Termination-for-convenience provisions protect customers but expose vendors to unrecovered sunk costs
• •Change-of-control clauses can derail acquisitions and reduce company valuation
• •Blanket compliance warranties expose you to all federal, state, and international regulations (including unknown ones)
• •SLAs written as warranties blur liability lines and create outsized legal exposure

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