Case Study: Contract vetting Saved SaaS Startup from ₹24 Lakh Liability

Client: Fast-growing SaaS Company (Name Confidential)
Service Area: Contract Drafting & Legal Advisory
Industry: IT / Cloud Communication
Duration: 2 weeks

Challenge

A leading SaaS startup approached Wisely Legal after receiving a legal notice from its largest enterprise client. The issue? An ambiguous service-level agreement (SLA) and poorly worded liability clause in their Master Service Agreement (MSA) exposed them to a potential claim of ₹24 lakh due to service downtime.

The company had signed the MSA without legal vetting, relying on generic templates. When a third-party infrastructure issue caused system failure, the client alleged breach of contract and claimed business losses.

Our Solution

We carried out a clause-by-clause audit of the existing agreement and identified several legal risks:

  • No force majeure protection
  • Unlimited liability for service disruptions
  • Missing cap on damages
  • No proper dispute resolution mechanism

Wisely Legal took swift action to:

  • Redraft and renegotiate the MSA to include liability caps
  • Clearly define SLA terms, technical limitations, and third-party risks
  • Add arbitration and mediation clauses for dispute resolution
  • Create new contract templates for future use

We also trained the client’s sales and tech teams on red-flag clauses to watch for in new client contracts.

The Result

  • Client avoided a costly court battle and settled the matter for under ₹1.2 lakh
  • New MSA structure deployed across 20+ client contracts
  • Legal readiness showcased to potential investors before their Series B funding round

Key Takeaways

  • Ambiguous contracts can lead to major financial and reputational loss
  • A one-time legal review can help businesses avoid lakhs in liabilities
  • Tailored contracts protect startups as they scale
Need help with contracts? Let Wisely Legal safeguard your business with expert drafting and legal strategies tailored to your needs.

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