Why ERP License Contracts Are Not True Contracts

We are pleased to announce our latest educational video, “Contracts to Access ERP - Are Not Really Contracts”, now available on our YouTube channel and embedded below for your convenience. Designed for IT personnel and executives, this concise video examines why typical ERP license contracts from vendors are so fundamentally flawed that they fail to qualify as legitimate contracts.

Drawing on our experience with over 1,000 ERP projects since 1996, the video explains how ERP contracts often undermine buyer protections through vague language, unilateral seller rights to modify terms, and references to external documents with unclear precedence. These elements, combined with explicit constraints on buyers and broad seller privileges, prioritize vendor control and cost escalation over mutual agreement, particularly given the high costs and risks of changing ERP systems. The video also highlights how this industry trend has worsened over the past 15 years.

Watch the embedded video to gain critical insights into the deficiencies of standard ERP contracts and their implications for buyers. For guidance on securing appropriate commercial terms and costs, explore the related resources linked in the video description. Be sure to like and subscribe to our YouTube channel for ongoing ERP expertise. Thanks for your interest, and certainly call us with questions you may have.

Why ERP Software Contracts Are Nearly Useless for Buyers