Certainty Is On The Menu: Considerations For Lower Risk Service Contracts

Standard form service contracts are common across many industries. Using the restaurant industry as an example, standard form is the norm for linens, equipment, and cleaning services contracts. While the standard form makes for easier and efficient transactions, it also means limited opportunities to alter or negotiate terms of the agreement. Both parties should be aware of the terms and conditions in standard form contracts and their impact in the event of an early termination.

Awareness of four types of provisions is particularly important:

1. Automatic or self-renewing clauses;
2. Early termination clause or conditions on breach;
3. Choice of law clause; and
4. Choice of forum clause.