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Deviation Review

Review non-standard contractual language and route decisions

Contract ID
CON-2024-7892
Supplier
Acme Global Services
Open Deviations
8 Total
High-Risk Deviations
3 Critical
Review Status
Under Legal Review
DEV-1024High Risk
Limitation of Liability
SupplierUnder Legal Review
DEV-1025Medium Risk
Termination for Convenience
InternalNew
DEV-1026Low Risk
Governing Law & Jurisdiction
SupplierApproved
Comparison Workspace
Standard Language
Neither party shall be liable to the other for any indirect, incidental, special or consequential damages, or any loss of profits, revenue, data or data use. The total liability of Provider for all claims shall not exceed the total fees paid under this Agreement during the twelve (12) month period preceding the event giving rise to the liability.
Proposed Revision
Neither party shall be liable for indirect damages. Supplier's total liability shall be capped at 50% of the fees paid in the last 6 months, excluding cases of gross negligence or willful misconduct.

Fallback Options

Limitation of liability capped at 100% of annual contract value with specific exclusions for IP infringement and confidentiality breaches.

Internal Proposed Revision

Rationale for Change

Supplier policy requires lower liability caps for regional service agreements to maintain insurance compliance.

Legal Comments

Risk Assessment

Significant increase in financial risk. The proposed 50% / 6 month cap is below our standard enterprise requirement.

Procurement Comments

Discussion & History

PJ
Peter Jameson (Procurement)2 hours ago
I discussed this with the supplier. They are adamant about the 50% cap due to their new insurance policy. Sarah, do we have any flexibility?
SJ
Sarah Jenkins (Legal)Just Now
Checking against the regional framework. I'll propose a fallback that includes a higher cap for IP-related breaches.
Mandatory Reason/Comment
Snapshot & Risks
Overall Risk Score
7.8
JurisdictionDelaware, USA
Approval Rules2+ Legal Reviewers
Related TemplateMSA Enterprise v4
DeadlineApr 10, 2024
Next ActionAwaiting Legal Review
Linked Stakeholders
U1
U2
U3
U4
+2
Deadline
Due in 2 days
Final Decision Summary

No final decision has been recorded yet. Decisions will be summarized here after approval/rejection.