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AI Contract Review — NDA_SaaS_2024.pdf
Clause 7.2 — Limitation of Liability High Risk

"The Disclosing Party shall bear unlimited liability for any breach of confidentiality obligations under this Agreement..."

AI Suggestion

Add liability cap: "...aggregate liability shall not exceed the total fees paid under this Agreement in the preceding 12 months."

Ref: Indian Contract Act, 1872 s.73 | Similar clause in 89% of NDAs
3 High 5 Medium 2 Low
10 issues found
100,000+
Contracts Reviewed
15,000+
Pre-Vetted Clauses
94%
Risk Detection Rate
<60s
Avg. Review Time
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Original Clause

Clause 12.1 — Indemnification

"The Service Provider shall indemnify, defend, and hold harmless the Client from any and all claims, damages, losses, costs, and expenses (including attorney fees) arising out of or related to the Service Provider's performance of services, regardless of the cause or nature of such claims, without any limitation on liability or cap on damages."

Unlimited Liability No Carve-Outs Overly Broad Scope
AI-Revised Clause

Clause 12.1 — Indemnification (Revised)

"The Service Provider shall indemnify, defend, and hold harmless the Client from claims, damages, and losses directly arising from the Service Provider's negligence, wilful misconduct, or material breach of this Agreement. The Service Provider's aggregate liability under this clause shall not exceed 2x the total fees paid in the preceding 12 months. This indemnity excludes indirect, consequential, and punitive damages."

Added liability cap (Indian Contract Act s.73 — reasonable compensation)
Narrowed scope to negligence, wilful misconduct, and material breach
Excluded consequential damages — aligned with 89% of market-standard NDAs
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Step 3

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15+ years in tech and cloud infrastructure. Building AI systems that make legal expertise accessible to every business in India.

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