How to Spot a Legal Red Flag Before Your Client Gets Burned
If you work inside your client’s systems, projects, or platforms, you usually see problems long before anyone calls a lawyer, because you are close to the work and you notice when something feels off or incomplete, and that early view is exactly where small risks can be turned around before they become disputes, delays, or expensive rework.
Your role is not to slow things down, it is to help your client keep momentum without stepping into avoidable trouble, and a simple way to do that is to spot the patterns that tend to create legal headaches and steer them toward timely legal advice when it matters.
Below are five common red flags we see again and again, and if your client is ticking one or more of these, it is time to nudge them toward proper support.
1. They want a contract but cannot explain scope or budget clearly
A contract only works when it mirrors reality, which means the business needs to know what will be delivered, how much it will cost, and when it will happen, and if those basics are fuzzy then any agreement will be built on guesswork that invites arguments later. This is a moment to pause, clarify scope and numbers, and then translate that detail into terms that actually protect the project, and a quick chat with a lawyer at this stage can save months of frustration.
2. A website is about to go live without legal documents
It is exciting to push the big green button on a new site, although launch without terms and conditions, a privacy policy, or the right disclaimers leaves the business exposed on day one. If you are supporting an IT provider or a digital team, point them to this practical read on the three essentials every website should include, namely terms of use, a privacy policy, and a clear complaints or contact process, which we break down in our guide, Is Your Website Legally Compliant? What Every IT Provider Should Know right here. A short review now prevents awkward conversations with customers later.
3. A SaaS platform is collecting customer data without a privacy policy
Once a platform stores names, emails, payment details, usage logs, or anything personal, the business is operating inside a legal framework as well as a technical one, and the absence of a clear privacy policy puts the company at risk with customers and regulators. Give your client a gentle push to get a policy in place and to map how data is collected, used, shared, and secured, and if they need help, encourage them to seek expert advice so the documentation matches what the system actually does, not what someone wishes it did.
4. A developer is handing over intellectual property and nothing is signed
Code, designs, branding, and content are valuable, but ownership does not automatically move with the invoice or the final email that says all done, and we regularly meet businesses that assume they own the work when legally they might not. Before handover, make sure there is a written assignment or a licence that reflects commercial reality, and if your client is building a new brand or product, this short article on common traps is a helpful primer to share, Startup IP Mistakes to Avoid which you can find here. If things feel complex, an IP lawyer can tidy this up quickly.
5. A data incident has happened and there is no plan
Hope is not a response plan, and when a breach or suspected incident occurs, timelines matter and roles must be clear. If no one knows who to call, what to record, or how to assess harm, the business loses precious time and may miss mandatory steps. Encourage your client to set up an incident response plan, to run a short tabletop exercise, and to confirm when they must notify customers or the regulator, and if there is uncertainty, suggest getting fast legal advice so decisions are defensible.
A simple checklist you can share
Offer your clients this quick self check and invite them to be honest with themselves, because early action beats crisis management every time.
We want a contract, but our scope and budget are not settled
Our website is going live without terms, privacy, or disclaimers
Our platform collects customer data, and we do not have a privacy policy
A developer is handing over work, and there is no signed IP agreement
We had a data incident, and we do not have a clear plan
If they tick one or more, it is time to speak with a lawyer for clear next steps.
Spotting these issues early is not about being difficult, it is about protecting the project and the people involved so the business can keep moving with confidence. If you need a quick sense check on any of the topics above, reach out for expert advice and we can help you put the right guardrails in place.
DISCLAIMER
The content given herein is provided for information purposes only. It is general in nature and does not constitute legal advice and should not be used as such. Formal legal advice should be sought in particular matters.
Connected Legal + Commercial does not accept any liability to any person for the information (or use of such information) which is provided herein or incorporated into it by reference.
The information is provided in good faith on the basis that all persons accessing the content undertake responsibility for assessing its relevance and accuracy and will seek appropriate formal legal advice accordingly.