Which Contract Term Is It?

About this interactive

A contract is made of terms, each one thing the parties agree on. The Agreement Types lesson names three that manage risk. Rules of engagement: the rules for an engagement such as a penetration test. What may be tested and what is off limits, the schedule, the process, and what happens if something goes wrong. Right to audit: the right to go in and audit the other party's systems or processes, often again later. The lesson's example is an initial audit, then a right written into the contract so you can check further down the line that the vendor is still doing what it said. Source code escrow: a copy of the source code held by a neutral third party, the escrow agent, and released to the customer or partner only if something happens to the maker, such as going out of business. The lesson's own story: a partner selling its software relied on the code, the maker did not want to hand it over, so a copy went into escrow. The partner is protected if the maker fails, and the maker never simply gives its code away. A quick test for each card: is it setting limits on a test, keeping the right to check later, or keeping the code safe in case the maker fails?

What you'll learn

Pick the contract term that meets a need: rules of engagement, a right to audit, or source code escrow
Recognize what each term protects: a test kept within agreed limits, the ability to keep checking a vendor after signing, and access to software if its maker fails

Aligned to

CompTIA Security+

5.3 Explain the processes associated with third-party risk assessment and management.

NIST CSF

GV.SC-05 Requirements to address cybersecurity risks in supply chains are established, prioritized, and integrated into contracts and other types of agreements with suppliers and other relevant third parties.

Key terms

Rules of Engagement: Contract terms that define the boundaries, schedule, and procedures governing an activity such as penetration testing.
Right to Audit: A contractual clause that grants one party the authority to review and audit the systems, processes, or compliance of the other party on an ongoing or scheduled basis.
Source Code Escrow: An arrangement where a copy of software source code is held by a neutral third party and released to a licensee if the developer fails to maintain the software or goes out of business.

Topics

Vendor Management Agreements Interactive Categorize

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