What Is a Dealbreaker in a Contract?

A closer look at how certain high-risk clauses can disqualify a contract from being certified.

A dealbreaker is a contract clause considered high risk and likely to raise red flags during negotiations. Common examples include broad liability disclaimers or terms allowing vendors unrestricted use of customer data. TermScout flags these clauses due to their potential to create significant imbalance or legal exposure. Contracts containing dealbreakers are ineligible for certification until these issues are resolved or mitigated.