Legal Risks in IYC's Terms & Conditions: Critical Gaps and Financial Exposure | Erayaha

## Unveiling Legal Risks in IYC's Terms & Conditions: A Case Study

When we examined The International Yacht Company (IYC)'s publicly available Terms & Conditions, our analysis revealed several critical legal and logical gaps that could expose the company to substantial financial and regulatory risks. In a sector where a single GDPR violation can result in fines up to €20 million or 4% of global turnover, and ambiguous liability terms can lead to multi-million dollar litigation, robust contract language is essential. Below, we highlight four key issues and actionable improvements.

1. Absence of Privacy and Data Protection Clauses

IYC's T&C lacks any mention of how user data is collected, processed, or protected. This omission directly contravenes GDPR, CCPA, and similar data privacy regulations. Without clear privacy terms, the company faces regulatory fines and reputational damage.

Legal Analysis

critical Risk

Removed

Added

[No privacy orWe are committed to protecting your personal data. All personal information collected is processed in accordance with applicable data protection clause present]laws, including the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA). Details regarding the types of data collected, purposes of processing, and your rights as a data subject are outlined in our Privacy Policy.

Legal Explanation

The absence of a privacy clause violates major data protection regulations, exposing the company to regulatory fines and litigation. The revision ensures compliance and transparency, reducing legal risk and building user trust.

2. No Limitation of Liability or Disclaimers

The T&C does not contain any limitation of liability or warranty disclaimers. In the event of a service failure or data breach, IYC could be held fully liable for consequential damages, potentially resulting in claims exceeding $5 million based on industry averages for luxury service providers.

Legal Analysis

high Risk

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Added

[No limitation of liabilityTo the fullest extent permitted by law, IYC disclaims all warranties, express or disclaimer clause present]implied, and shall not be liable for any indirect, incidental, or consequential damages arising from the use of our services. Liability for direct damages is limited to the amount paid by the client for the relevant service.

Legal Explanation

Without a limitation of liability, IYC could be exposed to unlimited damages in litigation. The revised clause caps liability, clarifies risk allocation, and aligns with industry best practices, significantly reducing potential financial exposure.

3. Missing Governing Law and Jurisdiction Clause

There is no clause specifying which country's laws govern the contract or where disputes will be resolved. This exposes IYC to unpredictable litigation venues and increased legal costs, with cross-border disputes often exceeding $250,000 in legal fees.

Legal Analysis

medium Risk

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[No governing lawThese Terms & Conditions shall be governed by and construed in accordance with the laws of England and Wales. Any disputes arising out of or in connection with these terms shall be subject to the exclusive jurisdiction clause present]of the courts of London, England.

Legal Explanation

Specifying governing law and jurisdiction provides predictability, reduces forum shopping, and limits legal costs. The revision ensures disputes are resolved in a favorable and familiar legal environment.

4. Lack of Termination and Refund Policy

The T&C omits any provisions on contract termination, refunds, or cancellation rights. This ambiguity can lead to disputes with clients, regulatory scrutiny under consumer protection laws, and potential losses from chargebacks or forced refunds.

Legal Analysis

high Risk

Removed

Added

[NoEither party may terminate this agreement with written notice. In the event of termination or, clients are entitled to a pro-rata refund policy clause present]for services not rendered, subject to applicable cancellation fees as detailed herein.

Legal Explanation

A clear termination and refund policy reduces disputes, ensures compliance with consumer protection laws, and limits chargeback risk. The revision provides transparency and legal certainty for both parties.

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Conclusion: Strengthening Legal Enforceability

Our analysis reveals that IYC's current Terms & Conditions lack foundational legal safeguards, exposing the company to severe financial, regulatory, and reputational risks. Proactive redrafting with clear privacy, liability, governing law, and termination clauses is essential to mitigate exposure and ensure compliance.

How confident are you that your contracts would withstand regulatory scrutiny?
What would a multi-million dollar liability claim mean for your business continuity?
Are you proactively updating your T&Cs to reflect evolving legal standards?

This analysis is for educational purposes only and does not constitute legal advice. For actual legal guidance, consult with a licensed attorney. This assessment is based on publicly available information and professional legal analysis. See erayaha.ai's terms of service for liability limitations.