This clause requires you to have a plan to keep delivering services even if something disrupts your normal operations—like losing your office, key staff, or computer systems. It matters because without this, you could simply stop work during a crisis and the other party has no recourse. For example, if a server failure takes down your service for a week, a business continuity clause might require you to have backup systems ready. The legal principle is that you're committing to maintain service levels even during difficulties, not just when everything runs smoothly.
Before signing, make sure you actually have the systems in place to meet what you're promising—don't commit to something you can't deliver. Negotiate specific, realistic timescales (e.g., "restore service within 4 hours" rather than "immediately"). Add a clause that says you're not responsible for business continuity failures caused by events outside your control, like a nationwide power outage or internet provider failure. ---
Frequently Asked Questions
What does this clause mean in simple terms?
This clause requires you to have a plan to keep delivering services even if something disrupts your normal operations—like losing your office, key staff, or computer systems.
Why should I care about this clause?
It matters because without this, you could simply stop work during a crisis and the other party has no recourse.
What are my options?
For example, if a server failure takes down your service for a week, a business continuity clause might require you to have backup systems ready.
How does this affect small businesses?
The legal principle is that you're committing to maintain service levels even during difficulties, not just when everything runs smoothly.