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Consulting Services Agreement
Contract ID: CL-2026-0042 • Generated by CloviLegal AI
WHEREAS, Client desires to retain Consultant to provide certain marketing consulting services, and Consultant desires to provide such services to Client, on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:
1.1 Consultant shall provide marketing consulting services as mutually agreed upon in writing from time to time (the "Services"). The scope of initial Services includes strategic marketing advisory, campaign oversight, and monthly deliverables reporting.
1.2 Consultant shall deliver a written Monthly Deliverables Report by the 5th business day of each calendar month detailing work completed, KPIs achieved, and recommendations for the following month.
2.1 This Agreement commences on the Effective Date and continues for a period of six (6) months, unless earlier terminated in accordance with Section 6 of this Agreement.
2.2 This Agreement may be renewed by mutual written consent of both parties no later than fifteen (15) days prior to expiration.
3.1 Client shall pay Consultant a monthly retainer of $5,000.00 USD, due and payable on the 1st day of each calendar month.
3.2 Invoices unpaid after fifteen (15) days from due date shall accrue interest at 1.5% per month on the outstanding balance.
3.3 All fees are exclusive of applicable taxes. Client is responsible for all sales, use, and similar taxes.
4.1 Each party ("Receiving Party") agrees to hold in strict confidence all Confidential Information disclosed by the other party ("Disclosing Party") and not to disclose such information to any third party without prior written consent.
4.2 "Confidential Information" means any non-public, proprietary information disclosed in connection with this Agreement, including but not limited to business plans, financial data, customer lists, marketing strategies, and technical specifications.
4.3 The obligations of this Section 4 shall survive termination or expiration of this Agreement for a period of three (3) years.
5.1 All work product created by Consultant specifically for Client under this Agreement shall, upon full payment, be deemed a "work made for hire" and shall be owned by Client.
5.2 Consultant retains ownership of all pre-existing tools, methodologies, frameworks, and general know-how.
6.1 Either party may terminate this Agreement upon thirty (30) days' prior written notice to the other party.
6.2 Either party may terminate immediately upon written notice if the other party materially breaches this Agreement and fails to cure such breach within ten (10) days of written notice thereof.
7.1 IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT, INCIDENTAL, OR CONSEQUENTIAL DAMAGES. CONSULTANT'S TOTAL LIABILITY SHALL NOT EXCEED FEES PAID IN THE THREE (3) MONTHS PRECEDING THE CLAIM.
8.1 Governing Law. This Agreement shall be governed by the laws of [State], without regard to conflict of law principles.
8.2 Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior understandings.
8.3 Amendments. This Agreement may only be amended by a written instrument signed by authorized representatives of both parties.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the Effective Date.
CLIENT SIGNATURE
Name: ________________________
Title: _________________________
Date: _________________________
CONSULTANT SIGNATURE
Name: ________________________
Title: _________________________
Date: _________________________
This draft is AI-generated. Review with qualified legal counsel before signing.
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Clause Risk Score
Standard market range: 40–55 / 100 — this clause is above average risk
Clause Type
Limitation of LiabilityRisk Flags Detected
One-month liability cap is extremely low
Capping liability at fees paid in the preceding 1 month means a 6-month $5K/month contract is capped at just $5,000 — inadequate for most service failures.
Blanket exclusion of data loss damages
Excluding liability for "loss of data" entirely is aggressive and may be unenforceable in jurisdictions with consumer protection law or GDPR obligations.
No carve-out for gross negligence or willful misconduct
Courts in many states will refuse to enforce limitation clauses that cover intentional misconduct. Adding a carve-out reduces legal risk for both parties.
Improvement Suggestions
Increase cap to 3–6 months of fees paid
A 3-month or 6-month lookback period is the market standard for SaaS and professional services contracts and balances both parties fairly.
Add gross negligence / willful misconduct carve-out
Insert: "...except in cases of gross negligence, fraud, or willful misconduct." This is standard practice and increases enforceability.
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Envelope Summary
Sarah Chen completed signing at 14:22 UTC. Certificate of Completion issued.
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Overall Vendor Risk
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Legal Document Analysis
Critical Risk Flags
No DPA on file — GDPR Article 28 violation risk
Processing EU personal data without a signed Data Processing Agreement violates GDPR and exposes your organization to fines up to 4% of annual revenue.
Mandatory arbitration waives class action rights
Binding arbitration clause requires individual dispute resolution only, preventing class actions. May conflict with your standard vendor contract terms.
TOS allows unilateral changes without notice
Vendor reserves the right to modify terms at any time with 30-day email notice only. Material changes to data handling terms may not trigger re-consent.
CloviLegal Recommendation
Require a signed Data Processing Agreement (DPA) before processing any customer data through this vendor. Request their standard DPA or use CloviLegal's DPA template. Review arbitration clause with legal counsel if dispute risk is material.
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