When would it ever be wise to sign an agreement with a supplier with these terms?:

  1. Exclusivity
  2. No SLA
  3. In Perpetuity
  4. 50% Net Worth Damages (e.g., if doing business with another supplier)

and with this track record of similar contracts:

  • More than 50% fail
  • Not all of remaining % can be happy

It’s no wonder that many end up just not doing any “business” anymore.