Service Agreement Risk Check: Before You Sign
Service Agreement Risk Check: Red Flags Before You Sign
Service Agreement Risk Check (NEW)
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SEO Title Tag: Service Agreement Risk Check | Red Flags + Negotiation Scripts (US & Canada)
Meta Description: Before you sign a service agreement, run a risk check. Spot scope, fees, renewals, SLAs, data, and liability red flags. Educational only.
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Service Agreement Risk Check: Red Flags Before You Sign
Intro (above the fold)
Service agreements can look “standard” while hiding expensive traps: auto-renewals, vague scope, unclear service levels, one-sided termination, and heavy liability. This page helps you spot the most common red flags and gives you example scripts to request cleaner terms—without turning every deal into a legal project.
Primary CTA: Get the “Before You Sign” Pack
Secondary CTA: Download the Free Checklist
Disclosure: Educational information only. Not legal advice.
Who this applies to
Use this for ongoing services like:
- marketing retainers, agencies, consultants
- managed IT, support, maintenance
- subscription services with implementation
- professional services statements of work (SOWs)
How to use this page (60 seconds)
- Confirm: what’s included, what’s excluded, how changes work.
- Look at renewals, cancellation, and transition/offboarding.
- If you hit 2+ red flags, slow down and consider review.
The 9 service agreement red flags (preview)
1) Scope of services is vague
Why it matters: You pay for ambiguity.
Example script:
“Can we define scope with inclusions/exclusions, deliverables, and what counts as out of scope?”
2) Service levels are promised but not defined (or remedies are unclear)
Why it matters: Expectations become disputes.
Example script:
“Can we define response times, service hours, escalation paths, and what happens if service levels aren’t met?”
3) Fees hide commitments, renewals, or unilateral price increases
Why it matters: You can get locked into spend you didn’t intend.
Example script:
“Can we clarify minimum term, renewal, notice periods, and any price increase mechanics in plain language?”
4) Change requests aren’t governed
Why it matters: Scope expands without cost control.
Example script:
“Let’s add a change-order process for new requests, with written approval and updated fees/timeline.”
5) Auto-renewal + cancellation is unfriendly
Why it matters: Many “bad deals” are renewal mechanics, not service quality.
Example script:
“Can we require renewal confirmation or provide a clear opt-out window with written notice?”
6) Termination lacks a transition/offboarding plan
Why it matters: Ending service can become operational chaos.
Example script:
“Can we add an offboarding clause: data return, handover, access removal, and a short transition period?”
7) Data handling/security obligations are mismatched
Why it matters: Either you’re under-protected or over-committed.
Example script:
“Can we define reasonable safeguards appropriate to the data involved and limit access to the minimum necessary?”
8) Liability is uncapped or one-sided (especially consequential damages)
Why it matters: Your downside can exceed the contract value.
Example script:
“Can we add a liability cap tied to fees paid and clarify exclusions/limits for consequential damages?”
9) Assignment/subcontracting is too broad
Why it matters: You might end up with a different provider than you chose.
Example script:
“Can we require notice (or consent) for assignment and define subcontractor standards for confidentiality/security?”
US↔Canada watch-outs (short preview)
Cross-border service deals should clearly address:
- currency/FX fees
- tax/withholding questions (flag to your accountant)
- data location and access (including subcontractors)
- dispute resolution venue/law (don’t ignore it)
When to escalate (pause and get review)
Escalate if:
- sensitive data is involved (health/financial/minors)
- there are audit rights, heavy security standards, or large penalties
- liability/indemnity is broad and uncapped
- long lock-in terms or aggressive auto-renewal mechanics
- the agreement is high value or mission-critical
CTA section
Want the complete toolkit (fillable Deal Snapshot, full scorecard, and a full script library with A/B/C fallback options)?
Button: Get the “Before You Sign” Pack
FAQ
Is a “Master Services Agreement” the same as a service agreement?Often yes—MSAs set the framework; SOWs define the actual work.
What’s the fastest way to reduce risk? Clarify scope, renewals/cancellation, offboarding, data handling, and liability caps.