In our recent commercial contracting event, we asked our expert panel of speakers from Vroom, Elastic, Twist Bioscience & Ironclad what they’re currently experiencing during negotiations.
Changes in Force Majeur provisions
The pandemic has changed the way that we contract. We’re seeing the need for more nuanced provisions, and an uptick in negotiations around continuity. It’s almost become an SLA, and providers need redundancies in place for situations like pandemics or natural disasters. If you can’t provide something for a certain amount of time, do you give a discount? What is the back-up plan? These are things that companies are aware of, and asking questions about. Thanks to the economy, businesses are more cost-conscious so we’re also discussing points around termination for convenience and early termination policies much more that we previously did.
Rise in indemnity caps
With GDPR and CPRA regulations, companies are experiencing an increased awareness of potential costs associated with data breaches and global privacy laws. What was once a nebulous idea now has actual numbers attached to it and the goal is to limit any risks. One thing to note though, is that privacy negotiations tend to be regionally based and depend hugely on who is involved, along with the type of information being exchanged between both parties.
Privacy related indemnities, supercaps related to security, confidentiality and procedure in the event of a breach are now highly negotiated terms. In order to mitigate risk while still managing the goals of the business, in-house legal teams are getting much more creative and flexible with regard to privacy related negotiations whereas, 5 years ago, it wasn’t necessary. It’s a different world now when it comes to exclusions and carve outs.
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Want to see more of our content? We've put together the top 5 things a first-time GC needs to know about privacy and for all you commercial contracting fans, check out our 5 ways in which commercial lawyers can do more with less. You're welcome!