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ContractRiskCheck FAQs | Contract Review Checklist for Small
ContractRiskCheck FAQs
ContractRiskCheck helps founders and small business owners spot contract red flags, negotiate key terms, and sign with confidence—especially for NDAs, independent contractor agreements, and service agreements across Canada and the United States.
Quick links:
- Start free: Free Contract Risk Checklist
- Packs: NDA Pack • Contractor Pack • Service Agreement Pack
- Help/Contact: Contact
General Questions
What is ContractRiskCheck?
ContractRiskCheck is a practical contract review workflow designed for founders and small business owners. It helps you review common agreements using a Deal Snapshot, a Red-Flag Scorecard (Green/Yellow/Red), copy/paste negotiation scripts, and an escalation rubric.
Is ContractRiskCheck a law firm or legal advice?
No. ContractRiskCheck provides educational information and tools, not legal advice. Using ContractRiskCheck does notcreate a lawyer-client relationship. If you need legal advice, consult a licensed attorney in your jurisdiction.
Who is ContractRiskCheck for?
It’s built for:
- founders and small business owners
- startups hiring contractors
- agencies and consultants onboarding clients
- teams buying vendor services (marketing, software, professional services)
- anyone who needs a contract review checklist and negotiation scripts without slowing down
What contracts do you cover?
Right now the packs focus on the contracts small businesses sign most often:
- NDA / Non-Disclosure Agreement
- Independent Contractor Agreement
- Service Agreement (often used with vendors and providers)
What’s the difference between a service agreement and a contractor agreement?
A contractor agreement typically covers hiring an individual contractor. A service agreement often covers a vendor/company providing services and may include terms like renewals, service levels, suspension rights, and broader risk allocation.
Why wouldn’t I just use ChatGPT to review a contract?
ChatGPT can help explain clauses, but founders often need:
- a repeatable contract review process (not a one-off chat)
- consistent risk triage (what’s “must-fix” vs “nice-to-have”)
- negotiation scripts that are short, firm, and professional
- guidance on what NOT to paste into AI tools (confidentiality and data risk)
ContractRiskCheck is a system—built for speed and consistency.
How long does it take to use a pack?
Most users can complete a basic review in 20–30 minutes:
- Deal Snapshot (5 minutes)
- Scorecard (10–15 minutes)
- Scripts + edits (5–10 minutes)
What’s inside each “Before You Sign” pack?
Each pack includes:
- a Deal Snapshot template
- a Red-Flag Scorecard (Green/Yellow/Red)
- copy/paste negotiation scripts (A/B/C)
- an escalation rubric (when to pause and get legal review)
- a US-Canada watch list
What if the other party says “our contract is non-negotiable”?
That’s common. Many vendors and counterparties can change terms, but won’t unless asked. Use the scripts to request targeted edits (liability cap, renewal terms, scope clarity, IP ownership). If key risks remain, the escalation rubric helps you decide whether to proceed or walk away.
When should I still hire a lawyer?
Consider legal review when you hit “high-stakes triggers,” such as:
- uncapped liability or broad indemnities
- core IP assignment/licensing issues
- sensitive data or heavy security/audit obligations
- major deal value, long term lock-in, or regulatory exposure
- aggressive remedies (injunction + penalties) or personal guarantees
NDA Questions (Non-Disclosure Agreements)
What are the biggest NDA red flags?
Common NDA red flags include:
- overly broad definition of “Confidential Information”
- no reasonable exclusions (public info, already known, independently developed)
- “residuals” clauses that weaken confidentiality
- hidden IP assignment or broad licenses
- non-compete/standstill terms slipped into an NDA
- extreme remedies or impractical venue/jurisdiction
Should an NDA be mutual or one-way?
It depends. If both parties will share sensitive information, a mutual NDA is typical. If only one party is disclosing, a one-way NDA may be fine—so long as obligations are clear and fair.
How long should an NDA last?
Many business NDAs use 2–5 years for general confidential information. Truly sensitive trade secrets may require protection as long as they remain trade secrets. If the NDA is “forever” for everything, that’s a common negotiation point.
Related: NDA Before You Sign Pack
Independent Contractor Agreement Questions
What are the biggest contractor agreement red flags?
Watch for:
- vague scope (“as needed”) and no change order process
- unclear deliverables and acceptance criteria
- payment terms that allow unilateral nonpayment
- overbroad IP assignment (including unrelated inventions)
- non-compete or overly broad non-solicit
- uncapped liability/indemnity and no consequential damage limits
- termination terms that create unfair exit risk
Related: Independent Contractor Before You Sign Pack
Who owns the work product in a contractor agreement?
It depends on the clause. Many agreements attempt to assign everything to the client (sometimes including pre-existing tools). A fair approach usually clarifies:
- ownership of paid deliverables
- exclusion of contractor pre-existing materials
- any license terms required for reuse or operation
What should be included to prevent scope creep?
The most effective protection is:
- a clear scope + exclusions
- milestones/deliverables
- acceptance criteria and review window
- a written change order process for new requests
Service Agreement Questions
What are the biggest service agreement red flags?
Common red flags include:
- hidden auto-renewal and difficult cancellation terms
- unilateral right to change pricing or terms
- suspension/termination rights that are one-sided
- vague service levels / support promises
- broad data use rights, weak privacy terms, or unclear security obligations
- unclear IP ownership/licensing of deliverables
- uncapped liability and broad indemnities
Related: Service Agreement Before You Sign Pack
What should I look for in renewals and auto-renew clauses?
Founders often miss:
- notice deadlines (e.g., “cancel 60 days before renewal”)
- renewal term length and pricing increases
- whether termination requires paying out the full term
- whether services can be suspended for minor disputes
What if a vendor wants access to customer data?
Data access should be limited to what’s necessary, and the agreement should clarify:
- who can access (employees, contractors, subprocessors)
- how data is stored and protected
- what happens on termination (return/deletion, access removal)
- whether the vendor can use data for analytics or “improvement” (a common negotiation point)
US–Canada Cross-Border Questions
Does ContractRiskCheck work for both U.S. and Canadian contracts?
Yes. The packs include a US-Canada watch list and prompts for common cross-border friction points like governing law/venue, currency, privacy, and enforcement practicality.
What cross-border issues should I pay attention to?
Common issues include:
- governing law and venue (where disputes happen)
- currency and payment terms (USD/CAD and FX fees)
- data location and privacy obligations
- tax/withholding questions (talk to your accountant)
- whether the contract assumes U.S. norms that don’t match Canadian practice (or vice versa)
Practical “How-To” Questions
What’s the fastest way to use ContractRiskCheck when I’m under time pressure?
- Use the Deal Snapshot to confirm the business deal
- Do a quick pass with the scorecard
- Apply scripts only to the top 3–5 Yellow/Red items
- Use the escalation rubric to decide if you should pause
Do you offer a free resource?
Yes — start with the Free Contract Risk Checklist.
How do I contact you?
Use the Contact page.
Recommended external resources
These are credible sources that founders often reference when thinking about business practices, privacy, and compliance:
- U.S. Federal Trade Commission (FTC): https://www.ftc.gov/
- U.S. Small Business Administration (SBA): https://www.sba.gov/
- Government of Canada – Business: https://www.canada.ca/en/services/business.html
- Office of the Privacy Commissioner of Canada: https://www.priv.gc.ca/en/
- California Department of Justice – Privacy/CCPA/CPRA: https://oag.ca.gov/privacy/ccpa
(These are informational resources, not substitutes for legal advice.)