critical outage
Definition
A critical outage is a complete or severe failure of a service, system, or product that makes it totally unusable and causes immediate, significant harm to a business or its customers. You will typically see this term in technology service contracts, where it triggers the vendor's fastest and most urgent response obligation. Most contracts define exactly what counts as critical so both sides agree on when the emergency clock starts ticking.
Example
If your payment processing software goes completely down during business hours and you cannot accept any customer transactions, that would likely qualify as a critical outage under your service agreement. Your vendor would then be required to drop everything and start fixing the problem within an hour or whatever timeframe your contract specifies.
Watch Out
Before you sign any technology service contract, make sure the definition of critical outage is written clearly and specifically, because a vague definition gives the vendor room to argue your emergency is not actually critical.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.