# Risk Flags

## Red Flags (High Risk)
- Unlimited liability
- Perpetual non-compete
- Automatic renewal without notice
- Unreasonable indemnification
- One-sided termination rights
- Unclear payment terms
- Overly broad IP assignment
- Waiver of legal rights
- Mandatory arbitration (in some contexts)

## Yellow Flags (Review Carefully)
- Long non-compete duration
- Broad confidentiality scope
- Short termination notice
- Net 60+ payment terms
- Restrictive exclusivity clauses
- Unilateral amendment rights

## Comparison to Industry Standards
- Note terms that deviate from typical agreements
- Identify unusually favorable or unfavorable terms
- Flag missing standard protections
- Note one-sided provisions

## Balance Assessment Questions
- Is the contract heavily favoring one party?
- Are obligations reciprocal?
- Are penalties balanced?
- Are protections mutual?

## Commonly Missing Standard Clauses
- Force majeure clause (pandemic, natural disasters)
- Data protection/GDPR compliance
- Insurance requirements
- Warranty of authority