Some more legal tips
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Sometimes, clauses where an arbitration dispute resolution process is required are set in cloud computing contracts.
This arbitration dispute resolution could appear as an alternative to the ordinary jurisdiction, or as a compulsory process (this assumption can not be applicable when the customers are consumers). Arbitration could be followed, as well, in case of exceeding a certain value or whether a concrete jurisdiction determined so.
Accepting arbitration clauses should always take into account the trade-off, which arbitration procedures provide, assessing time and operating cost.
EXCLUSIONS AND LIMITATIONS OF THE LIABILITY
All providers, overall USA providers, seek to limit or exclude, directly in the contract, its responsibility in case of breach of it. In many cases the limitation of liability does not relate to the facts that generate it, but the extension of the compensation Think of the clauses containing "indemnification caps" or clauses that establish the way of compensation "in service".
The attitude correct to hold in the case of clauses of limitation or exclusion of liability is:
- Check the validity of the clauses in relation to the applicable law to the contract in question.
- Choose the providers who offer superior contractual guarantees.
- Choose, as well, providers who present better capital guarantees.
- Consider external security. (Insurance)
Most cloud computing contracts include clauses related to the permitted uses. Although normally the uses that are not allowed correspond with the illegal uses established by law, it is advisable to verify the content of the clause, in order to:
- Ensure that the uses not permitted are not linked, neither partly, to the ones customers intend to do with service provided.
Important to ensure that in these clauses are not associated indemnify clauses very rigorous.