LegalAI[Space]

Commercial contracts · Commercial fee-earner, manufacturing in-house counsel

Review a supply agreement for quality and liability terms

Ulverston Foods is buying an ingredient under a three-year supply agreement and the recall risk sits entirely on the buyer. The review reads specification, rejection, recall and liability as one chain and shows where it breaks.

First draft
A ranked issues memo from one run, with a follow-up chat answer on the recall exposure the same morning.

The problem

Quality clauses in supply agreements are written as process and read as protection, which is not the same thing. If the rejection window is ten days from delivery but latent defects only show at the customer, the buyer has no remedy left. A recall indemnity capped at the price paid for the batch is not a recall indemnity.
  1. Step 01 of 05

    Open the matter with the product facts

    The matter records the ingredient, the annual spend, the three-year term and the fact that the buyer supplies retailers under their own recall policies.

    Matters · Project Halcyon · SPA warranties and disclosureOpen

    Project Halcyon: SPA warranties and disclosure

    Buy-side warranty review, disclosure analysis and cited due-diligence grid.

    Client
    Halcyon Bidco Ltd
    Reference
    WC-2026-0412
    Practice area
    Corporate / M&A
    Jurisdiction
    England and Wales
    Responsible partner
    E. Vance
    No conflict check on file.

    Chat, on this matter

    Compare warranties with the disclosure letter.

    Three high-priority exceptions require action: the unregistered charge, the change-of-control right and the tribunal claim.

    Send a message… (@ to mention tools)BalancedPrepare for
    1. 25 Aug

      Disclosure exceptions matrix

      Chat

    2. 21 Aug

      Disclosure exceptions matrix

      Run · completed · 560 credits

    3. 18 Aug

      Project Halcyon: Disclosure Letter

      Document · indexed

    4. 16 Aug

      Project Halcyon: Share Purchase Agreement

      Document · indexed

    5. 4 Aug

      Matter opened

      Opened

  2. Step 02 of 05

    Run the chain review

    Prepare for: Work-Stream Memo. The instruction asks the agent to follow one chain: specification, inspection, rejection, defect liability, recall cost and the cap that limits all of it.

    Agents · Contract Agent · New runMatter: Northgate · senior associate hire

    Agent

    Jurisdiction

    Prepare for

    Deliver as

    Instruction

    What should the agent look for?

    Documents

    Drop a contract, or pick one from the matter

    Also on the matter

    • Offer_letter_v3.pdf2 pages
    • Staff_handbook_2025.docx61 pages
    • Board_minute_14_Aug.pdf3 pages
    Platform model · zero data retention · audit register on
  3. Step 03 of 05

    Read where the chain breaks

    The rejection window closes before latent defects can appear, the recall wording covers direct costs only, and the cap applies to the recall indemnity even though the parties clearly did not intend that.

    Agents · Contract Agent · Employment Contract Compliance ReviewCompleted
    6 items need your confirmation14 authorities · Where we looked

    Senior Associate Employment Contract: English Law Review

    Summary

    1. 1.

      Clause 9(c), non-competeHigh

      The 12-month prohibition on working for any law firm anywhere in the UK, Ireland or EU, in any capacity, is almost certainly wider than reasonably necessary and therefore unlikely to be enforceable.

      Tillman v Egon Zehnder Ltd [2019] UKSC 32
    2. 2.

      Clause 11, data and monitoringHigh

      Blanket contractual consent is not an adequate basis for general employment processing, special-category data or unrestricted monitoring.

      UK GDPR, Arts 6 and 9
    3. 3.

      Clause 4, holiday carry-overHigh

      The unconditional five-day cap conflicts with mandatory carry-over rights where sickness, statutory leave or employer failure prevents leave being taken.

      Working Time Regulations 1998, regs 13 to 13A
  4. Step 04 of 05

    Test the exposure figure

    A chat question on what the buyer would actually recover on a full retail recall produces a worked figure from the contract's own numbers, with the wording that drives each step quoted.

    Matters · 14 Rowan Court, Flat 9 · ResearchSources ranked
    Matter: 14 Rowan CourtEngland and WalesResearch Agent
     
    Prepare for: Court-Ready · Deliver as: Word

    Where we looked

    • 1Your documentsLease, demand, correspondence
    • 2Primary law3 statutes, 1 judgment
    • 3Regulators and the recordNothing needed
    • 4Web searchOff for this question

    Authorities · 4

    • 1

      Law of Property Act 1925, s 146

      c 20
      not yet checked
    • 2

      Housing Act 1996, s 81

      c 52
      not yet checked
    • 3

      Commonhold and Leasehold Reform Act 2002, s 168

      c 15
      not yet checked
    • 4

      Escalus Properties Ltd v Robinson

      [1996] QB 231 (CA)
      not yet checked
  5. Step 05 of 05

    Sign off with the redline

    The partner ticks the items, clicks Verify all, and downloads the Word memo with the proposed carve-out from the cap as tracked wording.

    Agents · Contract Agent · Employment Contract Compliance ReviewCompleted
    • Replace the UK/Ireland/EU non-compete with a 3 to 6 month restriction tied to competing corporate-law work.

    • Replace blanket data consent with a lawful-basis clause and a separate monitoring notice.

    • Remove the five-day carry-over cap and reference the statutory carry-over rules.

    • Narrow the client non-solicit to clients dealt with in the final 12 months.

    • Add an explicit working-time opt-out withdrawal mechanism.

    • Confirm the bonus clause states the discretion is exercised in good faith.

What comes back

A document, not a transcript.

  • A single chain analysis from specification through to the cap, with the two breaks in it named.
  • A worked exposure figure on a full retail recall, calculated from the agreement's own numbers.
  • Redline wording for a recall carve-out from the cap and a longer latent defect window.
  • Action items covering the retailer recall policies, which have not been supplied and would change the analysis.

Authorities it checks

  • Sale of Goods Act 1979, s 14
  • Unfair Contract Terms Act 1977, s 3
  • Cavendish Square Holding BV v Makdessi [2015] UKSC 67
Every source it may cite

What it does not do

  • It does not tell the buyer whether to accept the commercial risk of an uncapped supplier price; it prices the legal exposure and stops.
  • It does not obtain the retailer recall policies. Those are named as documents the analysis depends on.
  • It produces drafting for a fee-earner to send, and it does not contact the supplier.

Run this on your own document

Free plan, two seats, no card.