The agreement states that minimum fee commitments in Service Orders are based on the service tier purchased rather than actual usage, are non-cancelable during the term, and are not refundable except in the limited termination scenarios described in section 3.2.
This analysis describes what Modal's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision establishes that Customers are financially obligated for the full committed service term and amount regardless of whether they use the Service, creating a fixed cost exposure that does not vary with actual consumption. The only exception pathways are those described in the termination section, which require material breach or specified insolvency events.
Under this clause, Customers who commit to a Service Order minimum are obligated to pay the full committed amount even if their actual usage is lower, and cannot reduce that commitment during the term. The agreement permits fee refunds only in the narrow circumstances described in section 3.2.
Cross-platform context
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Compare across platforms →"Minimum commitments as set forth in Service Orders are: (a) based on the Service purchased and not actual usage; (b) non-cancelable except as described in section 3.2 below; and (c) cannot be decreased during the specified term set forth in such Service Order. Fees are not refundable, except as described in section 3.2 below.Excerpt from Modal's Terms of Service
(1) REGULATORY LANDSCAPE: This provision is primarily a commercial contract term and does not directly implicate data protection regulations.
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This provision establishes that Customers are financially obligated for the full committed service term and amount regardless of whether they use the Service, creating a fixed cost exposure that does not vary with actual consumption. The only exception pathways are those described in the termination section, which require material breach or specified insolvency events.
Under this clause, Customers who commit to a Service Order minimum are obligated to pay the full committed amount even if their actual usage is lower, and cannot reduce that commitment during the term. The agreement permits fee refunds only in the narrow circumstances described in section 3.2.
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