Reasonable Risk Clause Samples
The Reasonable Risk clause defines the level of risk that parties are expected to accept as part of their contractual obligations, typically limiting liability to risks that are foreseeable and not extraordinary. In practice, this clause clarifies that each party is only responsible for risks that a reasonable person would anticipate in the context of the agreement, such as standard operational hazards but not rare or extreme events. Its core function is to allocate risk fairly between the parties, preventing one side from being held liable for unforeseeable or excessive losses.
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Reasonable Risk. If Uptime determines in its sole discretion that there is reasonable risk of non-payment or late payment by Client, Uptime may suspend Services without notice to Client until payment arrangements have been made that are acceptable to Uptime, including but not limited to, the requirement that Client deposit a prepaid retainer in an amount necessary to cover the anticipated cost of future Services.