“The vendor will be paid upon satisfactory delivery of the services within a reasonable timeframe.”

This clause seems simple. It cost one Indian startup ₹5 crore.

Let’s break it down:

1. “Satisfactory delivery” — But to whom?
Who decides what’s satisfactory? The client? The vendor? Courts hate vague terms — they create room for disputes and non-payment.

2. “Reasonable timeframe” — According to whom?
A vendor might assume 3 weeks. A client might expect 7 days. “Reasonable” becomes a breeding ground for delayed payments and legal chaos.

3. No fallback or escalation clause
What if there’s disagreement? Arbitration? Mediation? Court? Without clarity, you’re inviting lawsuits — expensive ones.

The Real Story

A funded startup hired a vendor to build a software module. The delivery was “satisfactory” according to the vendor, but not according to the founder. Delays, refund demands, and legal notices followed. They lost ₹5 Cr in sunk cost and litigation.

Don’t Let This Happen to You

At UNUC Legal LLP, we review, draft, and negotiate business contracts that close loopholes before they cost crores.

We’ve created a FREE “Contract Danger Zone Checklist” for Indian founders, consultants, and business owners.

UNUC Legal LLP

Legal protection for India’s new economy.
No fear. No fluff. Just sharp contracts.