What are the biggest risks to check in a commercial contract before signing?

The material risks in most commercial contracts are an uncapped or one-sided limitation of liability, indemnities you give without a cap, unclear ownership of intellectual property and work product, data protection terms that do not meet UK GDPR, no right to terminate for convenience, automatic renewal at a higher price, missing AI provisions covering training data and output liability, and the absence of audit rights or service levels.

Does a liability cap need to be mutual?

Not as a matter of law, but a one-sided cap that limits the supplier's liability while leaving the customer exposed is a common red flag. A balanced position caps both parties and carves out the categories that should never be capped, such as liability for a data breach, breach of confidentiality, or infringement of intellectual property.

What AI-specific clauses should a technology contract include in 2026?

A technology contract involving AI should address ownership and permitted use of training data, who owns and who is liable for model outputs, warranties around EU AI Act compliance where the system is in scope, and allocation of liability for errors or hallucinations. Contracts drafted before these issues became standard often omit them entirely.

Contract Risk Checker | Commercial Contract Review | RMOK Legal

RMOK LEGAL §

Contract Risk Check · v1

Beyond the fine print

The risk is always in the fine print nobody read.

Most commercial disputes begin with a clause that went unquestioned at signing. Read your contract the way a senior lawyer would, one clause at a time, and get a written risk commentary on the eight areas that cause the most trouble.

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Clauses under review

§1 Limitation of liability

§2 Indemnities

§3 Intellectual property

§4 Data protection

§5 Term & termination

§6 Automatic renewal

§7 AI provisions

§8 Audit rights & SLAs

Preliminaries

Risk Commentary

Clause-by-clause findings

The next step

Turn this snapshot into certainty

A snapshot flags where to look. A review by a senior lawyer tells you exactly what to change and how to negotiate it. RMOK Legal reviews commercial contracts for a fixed fee, confirmed before any work begins, from £400 +VAT.

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This tool gives general information based on the answers you provide. It is not legal advice and does not create a solicitor-client relationship. Every contract turns on its specific wording and context. For advice on your situation, speak to a qualified solicitor. RMOK Legal is authorised and their solicitors are regulated by the Solicitors Regulation Authority.

The risk is always in the fine print nobody read.

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The risk is always in the fine print nobody read.

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EU AI Act Compliance Guide for UK Businesses

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