Werkzeug

Account Executive

Redline / Legal question (SaaS)

Does anyone know why a prospect would ask the seller to strike out "exclude a warrant for fitness for a particular purpose."?

From what I can tell based on previous deals, and super sophisticated google searches, this is pretty standard language included in most if not all SaaS service agreements, and I'm curious if anyone else in SaaS sales has gotten this redline. It's a first for me.

⚖️ Legal

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UrAssIsSaaS

Arsonist

SaaS Eater

Shouldnt your legal team be handling all the redlining?

Werkzeug

Politicker

Account Executive

They are, but prospect wants language removed, legal doesn't want to remove it, and now my deal is at best, shaky. So was just wondering if anyone else had seen this before.

Sunbunny31

Politicker

Sr Sales Executive 🐰

If your legal can state why it cannot be removed when you return the redline, that can help the customer understand context. You can also ask why they want it removed, which can provide context back to your legal, who may be able to craft a response or replacement language that addresses what the concern is.

UrAssIsSaaS

Arsonist

SaaS Eater

Have they given you any context on why they want it pulled? And has your legal team given you language/reasoning on why they wont remove it?

UrAssIsSaaS

Arsonist

SaaS Eater

jinx

Sunbunny31

Politicker

Sr Sales Executive 🐰

Damnit, do I owe you a Coke?

CuriousFox

WR Officer

🦊

Oof straight to Legal. Do not pass Go. Do not collect $200.

TennisandSales

Politicker

Head Of Sales

i have not heard that before. what does that even mean?

Werkzeug

Politicker

Account Executive

I can't even pretend to know what it means, much less why it would become a sticking point in a deal. Check your old contracts for it if you get bored, it would be in the Limitation of Liability (or similarly named) section.

I swear if I lose a deal over this, I'm gonna...take it as a dodged bullet and move on to the next deal, that's just what I'll do! :D

TennisandSales

Politicker

Head Of Sales

does your legal team have an issue with it?

Werkzeug

Politicker

Account Executive

Yeah they straight up said no effing way is that language being removed. Seems like a big deal 🤷🏼‍♂️

TennisandSales

Politicker

Head Of Sales

hahah oh shit! i would dig in with them for sure and understand why its a big deal/

antiASKHOLE

Tycoon

Bravado's Resident Asshole

Yeah, any redlines go up the chain. I get paid to have the deal signed. legalities and whatnot go elsewhere.

Sunbunny31

Politicker

Sr Sales Executive 🐰

Straight to legal with that redline. They'll let you know what it means and how critical it is (or isn't) to your contracts.

Our legal will get on the phone when it gets to the point of a standoff so that they can discuss with the customer's legal, and that usually unsticks anything last minute. It's definitely not the first thing we do, but there should also be that option.

I'd never let a sales rep answer these questions or take these concerns alone.

Werkzeug

Politicker

Account Executive

update: I just relayed that my legal said no dice and left it at that. Not trying to explain something I don't understand. They accepted and we're moving on to closed won!

Woof.

Sunbunny31

Politicker

Sr Sales Executive 🐰

Super! Best possible outcome.

saaskicker

Celebrated Contributor

Enterprise AE

How much is the contract worth? I usually say "we don't accept red lines for contracts less than $250,000" it has helped me grow deals in the past and makes the headache worth it

Kosta_Konfucius

Politicker

Sales Rep

Any question about redlining, I forward to my director

Pachacuti

Politicker

They call me Daddy, Sales Daddy

I have often handled the first go around with redlines and often ask clarifying questions around their reasons for a redline.

I’m not understanding why they’d redline that item. Need more context. That is something you need to ask the client.

SaaSyBee

Politicker

Founder

I asked our company's lawyer and this is what he said:

It’s usually there and the purpose for many is simply to make sure that your platform is not misused for stuff that is generally illegal like child abuse, drug dealing, etc. I would not accept the redline. Instead always just ask why they are removing it to understand their position. Often it’s just a lawyer that deletes it without a particular purpose. If they have a specific use case they want to use it for, we can always pre-approve it.

GDO

Politicker

BDM

Stay away from that kind of stuff. This shit will burn you. Pass it a long and don’t even try to touch it with a 10oor pole

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Redline / Legal question (SaaS)

21 comment

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