A Master Supply Agreement governs the ongoing supply of goods between buyer and supplier, setting pricing, logistics, and quality standards. This playbook provides insights into balancing continuity of supply, cost control, and contractual accountability.
Why This Matters: Non-compliance with data protection obligations can result in heavy fines, regulatory sanctions, and reputational damage.
Negotiation strategy
If you're the Buyer:
Ensure the contract includes comprehensive data protection measures, including breach notification protocols and audit rights. Negotiate for clear timelines and responsibilities in case of a data breach.
If you're the Supplier:
Advocate for reasonable data protection obligations that align with your operational capabilities. Ensure that breach notification timelines are feasible and that audit rights are not overly intrusive.
Essential elements
1
Data Handling Standards
Defines data processing protocols.
2
Breach Notification
Outlines breach reporting timelines.
3
Audit Rights
Allows data protection audits.
Action framework
ACCEPT
Propose edits if the clause lacks specific data protection measures or if timelines are unrealistic.
EDIT
Reject if the clause imposes unreasonable obligations or lacks compliance with key laws.
ADD
Add if the contract is missing essential data protection language or jurisdiction-specific requirements.
PRO TIP
Always ensure data protection clauses are tailored to the specific jurisdictions involved to avoid compliance issues.
Example clauses
FAVORABLE
Comprehensive Data Protection Clause
The parties agree to comply with all applicable data protection laws, including GDPR and CCPA. Each party shall implement appropriate technical and organizational measures to protect personal data against unauthorized access, use, or disclosure. In the event of a data breach, the affected party shall notify the other party within [X] hours and cooperate in any subsequent investigation. Each party grants the other the right to audit its data protection practices upon reasonable notice.
NEUTRAL
Basic Data Protection Clause
The parties shall comply with applicable data protection laws and notify each other of any data breaches.
UNFAVORABLE
Vague Data Protection Obligations
The parties will endeavor to protect data in accordance with applicable laws.
Fallbacks
High-Risk Projects
For projects involving sensitive data, ensure the clause includes enhanced security measures and more stringent breach notification requirements.
Cross-Border Data Transfers
Include specific provisions for data transfers across jurisdictions, ensuring compliance with international data protection standards.
Small Business Considerations
For small businesses, balance data protection obligations with operational capabilities to avoid undue burden.
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WEEK 1
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WEEK 2
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WEEK 3
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WEEK 4
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