Red Flag Hunter

How to play Red Flag Hunter

You see twelve clauses from a supplier agreement, one at a time, written the way they appear in real contracts. Mark each one as a red flag or as standard wording. The game then explains why. Clauses are drawn at random from a larger set.

A correct answer scores 10 points and a run of correct answers adds a streak bonus. Twelve out of twelve earns the General counsel rank.

What makes a clause a red flag

Most risky clauses share one of three features.

• Only one side can use it. The supplier may assign the contract, suspend the service or terminate, and the customer may not.
• There is no limit. An indemnity for all claims whatever the cause, or a waiver of your right to terminate, has no ceiling on what it can cost you.
• It can change without you. Fees that may be changed at any time by posting them on a website are not really agreed fees.

Clauses that look alarming but are normal

Force majeure, mutual confidentiality, a named governing law, written-amendment requirements and reasonable late-payment interest appear in almost every commercial contract. They are still worth reading, because the details matter, but their presence alone is not a warning sign.

A caution

This game is a learning aid and is not legal advice. Contract law differs between countries, and whether a clause is acceptable depends on the deal. For anything significant, have a qualified lawyer review the agreement. The business law guides explain the common contract terms in more depth.