Ambiguous scope and deliverables
The largest source of SME contract disputes is not bad faith — it is unclear scope. A two-line description of services creates room for two reasonable but conflicting interpretations the moment delivery begins.
- Define deliverables, acceptance criteria and timelines.
- Spell out what is out of scope.
- Document a change-control process.
Payment and termination terms
Vague payment milestones, no late-payment interest and informal termination rights leave SMEs financially exposed when a counterparty stops paying or walks away.
Liability, indemnity and warranty
Uncapped liability clauses, broad indemnities and warranties that exceed your insurance coverage are the contract terms most likely to put an SME out of business if something goes wrong.
Dispute resolution and exit
Most SME contracts default to litigation in the High Court. For commercial relationships, arbitration or expert determination is usually faster and more confidential — but only if the contract says so.