Tech Attorney Cohort

How Performance Warranties
and SLAs Allocate Risk
in SaaS Contracts
Part #2

Part 2 of a 3-Part Training Series:
When the SLA and Performance Warranty Collide!

If you missed the 1st part of this 3-part training series - click here to watch.

Video Highlights

Warranty vs Response SLA
Service Credit Problem
The Warranty as a Safety Net

How service credits, breach, termination rights, and refunds can overlap when SLAs and performance warranties interact in SaaS contracts.

In this video, the second part of the 3-part training series, we look at how the performance warranty and the SLA interact in SaaS contracts ⚖️

Many attorneys review these clauses separately, but they actually work together to allocate risk.

I explain how a vendor can comply with the SLA but still be in breach of the performance warranty.

We also discuss the situation where service credits are the sole and exclusive remedy under the SLA.

This raises the question of whether service credits prevent other remedies like termination or refunds.

The key takeaway is that SaaS contracts should not be reviewed clause by clause, but based on how clauses interact 📄

Because the real risk is often in the overlap between clauses, not in one clause alone.

If you missed the first part of this 3-part training series - click here to watch.

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