Contract Risk Checklist

Check your contract for gaps

For each clause, tell us whether your contract includes it. Nothing is stored.

1. Clear payment terms — amounts, schedule, and late fees so you know exactly when and how you get paid.

2. Termination / exit clause — how either side can end the agreement, and on what notice.

3. Limitation of liability — caps how much you can be forced to owe if something goes wrong.

4. IP / ownership of work product — who owns the work, deliverables, or inventions created under the contract.

5. Confidentiality / NDA — keeps your sensitive business information from being shared or reused.

6. Dispute resolution — sets how conflicts are handled (mediation/arbitration) and in which venue.

7. Indemnification — spells out who covers third-party claims, losses, or legal costs.

8. Governing law — states which jurisdiction's law applies if there's ever a dispute.

Why these 8 clauses matter

Most contract disputes don't come from bad intentions — they come from gaps. When a contract is silent on something important, the parties are left to argue, and the default rules that fill the gap are rarely the ones you'd have chosen. The eight clauses in this checklist are the ones that most often decide who wins when a deal goes sideways.

Getting paid and getting out

Clear payment terms and a termination clause are the backbone of any commercial agreement. The first tells you exactly when money is owed and what happens if it's late; the second gives both sides a clean, predictable way to walk away instead of being trapped or blindsided.

Limiting your downside

Limitation of liability and indemnification decide how much you could ultimately owe — and who pays when a third party brings a claim. Without them, a small mistake can turn into an unlimited, business-ending exposure.

Protecting what's yours

IP ownership and confidentiality protect the work you create and the information you share. Whether you're hiring a contractor or signing with a vendor, these clauses keep your ideas, deliverables, and data from quietly becoming someone else's.

Knowing the rules of the game

Dispute resolution and governing law set the forum and the law that apply if there's ever a fight. They sound like boilerplate, but they can determine whether a dispute costs you a quick mediation or a multi-year lawsuit in an inconvenient state.

Frequently asked questions

Not by itself. This checklist measures whether key clauses are present, but a clause that's present can still be poorly drafted or one-sided. A high score is a good sign — it's not a substitute for an attorney reading the actual language.

Not always. The right mix depends on the deal — a simple one-page services agreement may not need every clause, while a vendor or partnership contract usually should. When a clause is missing, the goal is to make sure that's a deliberate choice, not an accidental gap.

No. This is a general, educational tool that applies to business contracts broadly. The specific requirements and default rules can vary by jurisdiction and contract type, so treat the result as a starting point, not legal advice.

No. Your answers are processed in your browser and nothing is stored or sent anywhere unless you choose to submit the contact form for a contract review.

This checklist provides a general, simplified assessment for educational purposes only. It is not legal advice, does not reflect any specific jurisdiction's laws, and cannot evaluate the wording or adequacy of any clause. No attorney-client relationship is formed by using this tool.

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