5
PLAYBOOK TEMPLATES

Service Level Agreement (SLA)

An SLA establishes measurable service performance standards between provider and customer. This playbook explains methods to draft enforceable metrics, remedies for non-performance, and escalation procedures.

Indemnification Provisions

Why This Matters: Inadequate indemnity terms expose parties to significant legal costs and judgments. Detailed provisions reduce ambiguity and speed up defense and recovery.

Negotiation strategy

If you're the Company:

Ensure the indemnification clause covers all potential liabilities, including IP infringement and data breaches. Negotiate for reciprocal indemnities to protect against third-party claims.

If you're the Contractor:

Limit the scope of indemnity to direct damages and reasonable costs. Seek to include caps on liability and ensure clear procedures for notification and defense control.

Essential elements

1

Indemnity Triggers

Events activating indemnity obligations.
2

Scope of Indemnity

Extent of coverage and liabilities.
3

Indemnification Procedures

Steps for claim notification and defense.

Action framework

ACCEPT

Propose edits if the clause lacks clarity on triggers or scope.

EDIT

Reject if the clause imposes unlimited liability without reciprocal terms.

ADD

Add language for specific risks like IP infringement or data breaches.

PRO TIP

Always ensure indemnity clauses include clear procedures and reciprocal terms to protect both parties.

Example clauses

FAVORABLE

Comprehensive Indemnification Clause

"Each party agrees to indemnify, defend, and hold harmless the other party from claims, liabilities, losses, damages, costs, and expenses arising from IP infringement, data breaches, and other liabilities."
NEUTRAL

Basic Indemnification Clause

"The Indemnifying Party shall indemnify the Indemnified Party against third-party claims as specified herein."
UNFAVORABLE

One-Sided Indemnification

"The Contractor shall indemnify the Company for all claims without limitation or reciprocal terms."

Fallbacks

High-Risk Projects

In high-risk projects, ensure indemnity covers all potential liabilities, including unforeseen risks, with higher caps on liability.

Cross-Border Transactions

Consider jurisdictional differences in indemnity enforcement and include specific language to address cross-border legal challenges.

Data-Intensive Agreements

For data-intensive agreements, emphasize indemnity for data breaches and compliance with privacy laws like GDPR.
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