kpis
Definition
KPIs are measurable numbers or targets that you and another party agree to track in order to judge whether a job is being done well. Contracts often use KPIs to define what 'success' looks like so there is no argument later about whether someone met their obligations. Think of them as the scoreboard that both sides agreed to watch before the game started.
Example
If you hire a marketing agency, your contract might set a KPI requiring them to bring 500 new website visitors per month, giving you a clear, objective way to decide whether they are earning their fee.
Watch Out
Make sure every KPI in your contract is something you can actually measure with data you control, because vague KPIs are nearly impossible to enforce if a dispute arises.
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.