There is nothing wrong with California law
Click here for an updated version of this post. Some companies refuse to accept California law for their deals. In most IT contracts, that’s a mistake. California Employment and Consumer Protection Laws These anti-California companies worry that the state has business-unfriendly laws. But California’s arguably unusual laws relate mostly to employee and consumer rights. B2B […]
Time to Get Back to School – with Tech Contracts Academy®
This fall is the time to expand your information technology contracting expertise. Don’t wait! Join us. Tech Contracts Academy® distance learning opportunities include Tech Contracts Master Classes™ (a 7 ½ hour program covering all clauses typically found in IT contracts, in four classes), one hour+ topical webinars, and customizable in-house trainings (for groups, ranging from […]
Don’t define “material breach”
Some contract drafters define material breach in their termination provisions. They find “material” too vague on its own. That’s a mistake because defining the concept can limit your rights in ways you’ll eventually find unacceptable. And “material breach” is not vague, believe it or not. A contracting party needs the right to terminate for the […]
Why a notice period to terminate for convenience?
In service contracts, termination for convenience clauses often call for a long notice period. The customer (usually) can terminate for any reason, but it has to give 90 days’ notice — or maybe 180 days’ or more. In many cases, the customer also has to pay an early termination fee. But if the fee compensates […]
Announcing our new Master Classes
We’re excited to announce our new Tech Contracts Master Classes™. Tech Contracts Master Classes™ provide an in-depth yet unusually concise, accessible review of all the clauses typically found in information technology contracts. The Master Classes program is broken into four sessions taught by your instructor, David W. Tollen, with live Q&A in each. Our inaugural program […]
COVID-19 Disruption Terms
During 2020, we developed terms to address Covid-19: a clause that lets the customer suspend professional services and provides a procedure to restart. It looks like we’re not out of the woods yet (Delta variant, etc.), so those sorts of terms deserve a look. The clause below goes beyond force majeure by providing procedures for […]
Non-Compete Issue-Spotter
In a non-compete clause, one party promises not to compete with the other. In IT contracts, customers sometimes ask their professional services providers for non-compete terms. The service provider promises not to serve the customer’s competitors. (Click here for a sample clause from The Tech Contracts Handbook — and see bullet 8 below.) And in […]
Don’t Cross the (Payment) Streams
“Don’t cross the streams,” says Egon in Ghostbusters (the 1984 original). “It would be bad.” Why? “Try to imagine all life as you know it stopping instantaneously and every molecule in your body exploding at the speed of light.” You could face less extreme consequences if you cross the payment streams in a contract, but […]
U.S. Tech Contracts Law Firm of the Year!
We’re delighted to announce a new award for our founder’s law firm. Worldwide Financial Advisor Awards Magazine just announced Technology Contracts Law Firm of the Year – USA in its Golden Advisor Awards. David Tollen’s firm, Sycamore Legal, P.C.. was the winner. Sycamore Legal is based in the San Francisco Bay Area and provides legal […]
IP Indemnity Exception: “Registered after the Effective Date”
This article has been superseded by an updated version. Some intellectual property indemnities exclude claims about IP registered after the contract’s effective date. The tech provider argues that it shouldn’t be responsible for IP it didn’t know about when it created its product — or at least when it signed the contract. “If we couldn’t […]