A Cloud Services Agreement defines the legal and operational framework for cloud infrastructure or platform usage. This playbook outlines negotiation of service levels, data handling, and termination assistance provisions.
Why This Matters: Ambiguous termination terms can trap a party in an unfavorable contract or impose unexpected obligations after exit.
Negotiation strategy
If you're the Customer:
Ensure the contract includes clear termination rights and reasonable notice periods to avoid being locked into unfavorable terms. Negotiate for flexibility in renewal terms to align with business objectives.
If you're the Service Provider:
Seek to include automatic renewal clauses to ensure continuity of service. Negotiate for longer notice periods for termination to provide stability and predictability.
Essential elements
1
Contract Duration
Defines the initial term length.
2
Renewal Terms
Conditions for contract renewal.
3
Termination Rights
Conditions for ending the contract.
Action framework
ACCEPT
Propose edits if renewal terms are unclear or termination rights are too restrictive.
EDIT
Reject clauses that impose unreasonable post-termination obligations.
ADD
Add clauses to clarify post-termination obligations if missing.
PRO TIP
Always ensure termination clauses align with your strategic goals and provide sufficient flexibility.
Example clauses
FAVORABLE
Clear Termination for Cause
"Either party may terminate this Agreement immediately upon written notice to the other party if the other party materially breaches any provision of this Agreement and fails to cure such breach within [insert number] days after receiving written notice of the breach."
NEUTRAL
Standard Renewal Clause
"Upon the expiration of the Initial Term, this Agreement shall automatically renew for successive one-year periods (each a 'Renewal Term'), unless either party provides written notice of its intention not to renew at least [insert number] days prior to the end of the then-current term."
UNFAVORABLE
Ambiguous Post-Termination Obligations
"Upon termination or expiration of this Agreement, each party shall promptly return or destroy all Confidential Information of the other party in its possession, and each party shall certify in writing that it has complied with the requirements of this section."
Fallbacks
High-Risk Projects
In high-risk projects, ensure termination clauses allow for quick exit if project risks materialize. Consider adding specific risk-related termination triggers.
Long-Term Partnerships
For long-term partnerships, focus on flexible renewal terms and clear exit strategies to maintain a balanced relationship over time.
Jurisdiction-Specific Contracts
Contracts governed by specific jurisdictions may require additional clauses to comply with local termination laws. Consult local legal experts for guidance.
FEATURED SOLUTIONS
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WEEK 1
CLM Readiness and Design
Our CX team works with you to understand your contracting challenges, prioritize key workflows, and identify the biggest impact areas. We build a tailored implementation plan that fits your needs.
WEEK 2
Install Module
We connect DocJuris to your contract repositories, set up admin and user accounts, and ensure your environment is ready for success.
WEEK 3
Deliver & Test
Your team builds initial playbooks, reviews existing clause libraries, and trains the DocJuris agent to align with your internal standards and negotiation positions.
WEEK 4
Launch
We support you in rolling out DocJuris to a pilot group or your full organization—with launch materials, training, and hands-on support to drive adoption from day one.
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