5 Contract Clauses You Should Never Ignore

Most contract disputes do not come from the headline terms — they come from the fine print. Here are five clauses that regularly cause problems.

1. Limitation of liability

This clause caps how much either party can sue for. A cap too low can leave you severely undercompensated.

2. Indemnification

Who pays if a third party sues? Broad indemnification language can make you responsible for things outside your control.

3. Intellectual property assignment

Watch for clauses that give a vendor rights to anything you create using their platform.

4. Automatic renewal

Many contracts renew automatically with notice periods of 30 to 90 days. Miss the window and you are locked in.

5. Governing law and jurisdiction

A clause requiring disputes to be settled in another country can make enforcement practically impossible.

LexAI automatically flags all five of these and more.