Terms and Conditions
Last Updated: 21 January 2026
Introduction
These Terms and Conditions ("Terms") govern the provision of consultancy services by Michael MacDonald, trading as Brains Before Bots ("Brains Before Bots", "I", "me", "my"), to clients engaging Shadow AI Governance services.
Important: I operate as a sole trader, not a limited company. This means I have personal unlimited liability for all contractual obligations. Please read these Terms carefully before engaging my services.
Service Provider Details:
  • Legal Name: Michael MacDonald
  • Trading As: Brains Before Bots
  • Business Address: 4th Floor, Silverstream House, 45 Fitzroy Street, Fitzrovia, London, W1T 6EB, United Kingdom
  • Email: hello@brainsb4bots.com
  • Website: www.brainsb4bots.com
  • Jurisdiction: England and Wales
1. Definitions and Interpretation
1.1 Definitions
In these Terms, the following words have the following meanings:
"Client" means the business, organisation, or sole trader engaging my services for business purposes. These Terms are for business-to-business (B2B) engagements only. By engaging my services, you confirm that you are purchasing for trade, business, craft, or profession purposes and not as a consumer. If you are purchasing as a consumer (for personal, household, or family purposes), different terms may apply under UK consumer protection law. Please contact me at hello@brainsb4bots.com before proceeding if you are not purchasing for business purposes.
"Services" means the Shadow AI Governance consultancy services I provide, including:
- Shadow AI Audit (£500)
- Governance-Ready Pilot Blueprint (£3,500)
- Momentum Advisory Retainer (£2,500/month)
"Agreement" means the contract formed between the Client and me when the Client accepts a proposal or purchases services
"Deliverables" means the specific outputs defined in the service description or proposal
"Confidential Information" means all non-public information disclosed by either party
"Intellectual Property" means patents, rights to inventions, copyright and related rights, trademarks, business names, domain names, rights in get-up, goodwill, rights to sue for passing off, rights in designs, rights in computer software, database rights, rights to preserve confidentiality of information, and any other intellectual property rights
"Working Day" means Monday to Friday, excluding UK public holidays
1.2 Interpretation
References to "writing" or "written" include email. Headings are for convenience only and do not affect interpretation.
2. Service Descriptions
2.1 Shadow AI Audit (£500)
Scope:
  • Discovery consultation (60-90 minutes via video call)
  • Tool inventory and risk assessment
  • Gap analysis against enterprise governance standards
  • Comprehensive written report (8-12 pages)
  • Risk heat map and prioritised recommendations
  • 30-minute follow-up call to discuss findings
Duration: 2 weeks from initial discovery call
Deliverable: PDF audit report delivered via email
Limitations: This is an assessment service, not implementation. Recommendations provided do not constitute legal advice.
2.2 Governance-Ready Pilot Blueprint (£3,500)
Scope:
Week 1: Discovery and analysis
  • Stakeholder interviews
  • Current state documentation
  • Requirements gathering
Week 2: Policy development
  • Three Simple Rules implementation framework
  • Data Traffic Light classification system
  • Human Wrapper protocols
  • Prompt Dividend capture methodology
  • Approved tools register
Week 3: Team training
  • Team workshop (2 hours)
  • Role-specific training materials
  • Practical implementation scenarios
  • Q&A and buy-in building
Week 4: Enterprise readiness documentation
  • AI Assurance Pack (for client/prospect presentations)
  • Procurement response templates
  • Client communication scripts
  • Implementation handover documentation
Duration: 4 weeks from project kickoff
Deliverables:
  • Complete governance framework documentation (editable formats)
  • Training materials and recordings
  • AI Assurance Pack
  • Template library
Client Responsibilities:
  • Timely access to team members for interviews
  • Attendance at training sessions
  • Review and feedback on draft materials within agreed timelines
2.3 Momentum Advisory Retainer (£2,500/month)
Scope:
Monthly:
  • 60-minute advisory call (scheduled at Client's convenience)
  • Governance dashboard review
  • Tool evaluations (up to 2 new tools per month)
  • Unlimited email support for governance questions
Quarterly:
  • Policy review and updates to reflect regulatory changes
  • Team training refresher session
  • Benchmark report (comparing governance maturity to industry standards)
As-Needed (within reasonable limits):
  • Enterprise procurement questionnaire support
  • Client security assessment assistance
  • Incident response guidance
  • Regulatory change briefings
Duration: Month-to-month, subject to 30 days' notice for termination
Engagement Expectations: Approximately 10-12 hours of advisory time per month on average, with flexibility for urgent needs
Retainer Fee: £2,500 per month, billed monthly in advance
3. Engagement Process
3.1 Formation of Agreement
An Agreement is formed when:
- The Client accepts a written proposal from me, or
- The Client pays for services (for fixed-price offerings like the Shadow AI Audit), or
- Both parties sign a Statement of Work
3.3 Proposals and Quotations
All proposals and quotations are valid for 30 days from the date of issue unless otherwise stated. Prices are subject to change after this period.
3.3 Right to Decline
I reserve the right to decline any engagement at my discretion, particularly where:
- There is a conflict of interest with existing clients
- The requested services fall outside my areas of expertise
- I do not believe I can deliver value to the Client
4. Fees and Payment Terms
4.1 Pricing
Current service pricing:
- Shadow AI Audit: £500 (fixed price)
- Governance-Ready Pilot Blueprint: £3,500 (fixed price)
- Momentum Advisory Retainer: £2,500 per month
All prices are inclusive of all applicable taxes. As a sole trader currently pre-revenue, I am not VAT registered. If I become VAT registered in the future, I will provide 30 days' notice and VAT will be added to the stated fees.
4.2 Payment Terms
Shadow AI Audit:
- Full payment required before service commencement
- Payment via bank transfer (BACS), Stripe payment link, or other methods agreed in writing
- Payment details will be provided on each invoice
Governance-Ready Pilot Blueprint:
- 50% deposit required to commence project
- 50% balance due upon completion of deliverables
Momentum Advisory Retainer:
- Billed monthly in advance on the 1st of each month
- Payment due within 7 days of invoice date
- First month pro-rated if engagement starts mid-month
4.3 Late Payment
Late payments will incur interest at 8% above the Bank of England base rate per annum (the statutory rate under the Late Payment of Commercial Debts (Interest) Act 1998), calculated daily from the due date until payment is received. Additionally, I may claim fixed compensation for debt recovery costs as permitted by law.
4.4 Expenses
The quoted fees include normal business expenses (video calls, email, standard cloud tool usage). Any extraordinary expenses (e.g., travel to Client premises if requested) will be agreed in advance and billed at cost plus 10% administration fee.
4.5 Price Changes
For ongoing Retainer engagements, I may increase fees on 60 days' written notice. The Client may terminate the Retainer if they do not accept the increase.
5. Client Responsibilities
5.1 Information Provision
The Client agrees to:
- Provide accurate and complete information necessary for service delivery
- Grant timely access to relevant personnel for interviews and workshops
- Respond to requests for feedback or approvals within agreed timelines (typically 5 Working Days)
5.2 Decision Authority
The Client representative engaging my services warrants that they have authority to do so on behalf of their organization.
5.3 Implementation Responsibility
For the Shadow AI Audit and Governance-Ready Pilot Blueprint, I provide recommendations and frameworks. The Client is responsible for:
- Implementation of recommendations
- Ongoing compliance monitoring
- Adaptation of frameworks to their specific circumstances
- Legal review of any policies before formal adoption
My services constitute professional consultancy, not legal advice.
6. Intellectual Property
6.1 My Pre-Existing IP
I retain all rights to:
  • The "Three Simple Rules" framework (Data Traffic Light, Human Wrapper, Prompt Dividend)
  • My methodologies, processes, and templates
  • Any content published in my book, newsletter, or other materials
  • General knowledge and expertise developed through my practice
6.2 Client-Specific Deliverables
Upon full payment, the Client receives a non-exclusive, perpetual license to use Deliverables created specifically for them, including:
  • Their customised governance policies
  • Their training materials
  • Their AI Assurance Pack
  • Client-specific documentation
Restrictions: The Client may not:
  • Resell, sublicense, or commercialise these materials
  • Present them as their own original work if sharing publicly
  • Remove my attribution from template materials
6.3 Client Provided Materials
The Client retains all rights to information, documents, and materials they provide to me. The Client grants me a license to use these materials solely for delivering the Services.
6.4 Learning and Case Studies
I may use generalised learnings from Client engagements to improve my services and develop thought leadership content, provided that:
  • No confidential information is disclosed
  • Clients are not identified without explicit written permission
  • Any published case studies are approved by the Client in advance
7. Confidentiality
7.1 Mutual Obligations
Both parties agree to:
- Keep all Confidential Information strictly confidential
- Use Confidential Information only for the purposes of the Agreement
- Not disclose Confidential Information to third parties without prior written consent
- Protect Confidential Information with the same degree of care as their own confidential information
7.2 Exceptions
Confidentiality obligations do not apply to information that:
- Is or becomes publicly available through no breach of this Agreement
- Was already known to the receiving party before disclosure
- Is independently developed without use of Confidential Information
- Must be disclosed by law or court order (with advance notice to the disclosing party where legally possible)
7.3 Return of Information
Upon termination or request, each party will return or destroy all Confidential Information belonging to the other party.
7.4 Survival
Confidentiality obligations survive termination of the Agreement for 5 years.
8. Data Protection
8.1 Compliance
Both parties will comply with UK GDPR and the Data Protection Act 2018 in relation to any personal data processed under this Agreement.
8.2 Client as Controller
Where I process personal data on behalf of the Client, the Client is the data controller and I am the data processor. A separate Data Processing Agreement (DPA) will be executed if required.
8.3 My Data Processing
I will process Client data in accordance with my Privacy Policy (available at www.brainsb4bots.com/privacy-policy) and applicable data protection laws.
9. Data Processing (Where Applicable)
9.1 When This Section Applies
This section applies when I process personal data on behalf of the Client during service delivery. This typically occurs during:
  • Governance-Ready Pilot Blueprint: When I access employee information during team workshops or training sessions
  • Momentum Advisory Retainer: When I review or analyse systems that contain personal data
  • Shadow AI Audit: If I need to access employee usage data (though typically I receive only anonymised or aggregated information)
In these situations:
- The Client acts as the data controller (determines purposes and means of processing)
- I act as the data processor (processes data on behalf of the Client)
- UK GDPR Article 28 requires specific contractual terms between controller and processor
9.2 Data Processor Obligations
When acting as data processor, I will:
  • Process personal data only on documented instructions from the Client (unless required by UK law)
  • Ensure that all persons authorised to process the personal data are committed to confidentiality
  • Implement appropriate technical and organisational security measures to protect the data
  • Assist the Client in responding to data subject rights requests (access, rectification, erasure, etc.)
  • Notify the Client without undue delay upon becoming aware of any personal data breach
  • At the Client's choice, delete or return all personal data to the Client after the end of services
  • Make available all information necessary to demonstrate compliance with these processor obligations
  • Allow for and contribute to audits and inspections by the Client (or Client's auditor) where reasonably required
9.3 Sub-Processors
The Client authorises use of the following sub-processors for service delivery:
  • Google Workspace: Document storage, collaboration, and file sharing (UK/EU data residency configured)
  • [Other tools will be added here as needed]
I will notify the Client at least 14 days before engaging any additional sub-processors, giving the Client opportunity to object on reasonable grounds. All sub-processors are bound by equivalent data protection obligations.
9.4 International Data Transfers
If I transfer Client personal data outside the UK (for example, using tools with US-based infrastructure), I will:
  • Implement appropriate safeguards (UK IDTA, UK Addendum to EU SCCs, or adequacy decisions)
  • Conduct transfer risk assessments as required by UK GDPR
  • Provide documentation of transfer mechanisms upon request
  • Ensure all transfers comply with UK GDPR Chapter V requirements
9.5 Full Data Processing Agreement (DPA)
For clients requiring comprehensive Data Processing Agreement documentation, I will provide a standalone DPA upon request. This will include:
  • Detailed processing specifications (Annex I: parties, purposes, data subjects, data categories, processing activities)
  • Technical and organizational security measures (Annex II)
  • Sub-processor lists and change notification procedures
  • Annexes required for UK IDTA or UK Addendum to EU SCCs (where applicable)
The provisions in this Section 9 constitute the minimum contractual terms required by UK GDPR Article 28 for controller-processor relationships. They form part of these Terms and Conditions for all applicable engagements.
9.6 Client as Processor
If the Client is itself acting as a processor for its own clients (end controllers), the Client must ensure it has appropriate authorization from those end controllers to engage me as a sub-processor. The Client remains responsible for compliance with UK GDPR in its relationship with end controllers.
10. Limitation of Liability
10.1 Sole Trader Liability Notice
Important: As a sole trader, I have unlimited personal liability. Unlike a limited company, there is no legal separation between my business and personal assets. This means my liability for claims is not capped at a corporate asset level.
However, to make my services commercially viable while protecting both parties, the following liability limitations apply within the bounds permitted by law:
10.2 Unlimited Liability
Nothing in these Terms excludes or limits my liability for:
  • Death or personal injury caused by my negligence
  • Fraud or fraudulent misrepresentation
  • Any matter for which it would be illegal to exclude or limit liability
10.3 Limited Liability
Subject to clause 10.2, my total aggregate liability for all claims arising from or in connection with the Services, whether in contract, tort (including negligence), breach of statutory duty, or otherwise, shall not exceed:
  • Shadow AI Audit: £5,000 (ten times the service fee)
  • Governance-Ready Pilot Blueprint: £35,000 (ten times the service fee)
  • Momentum Advisory Retainer: £30,000 (twelve months of retainer fees)
10.4 Excluded Losses
I shall not be liable for:
  • Loss of profits, revenue, business, or anticipated savings
  • Loss of use or corruption of software, data, or information
  • Loss of or damage to goodwill or reputation
  • Any indirect or consequential loss or damage
10.5 Basis of Limitation
The limitations in this clause reflect a reasonable allocation of risk between the parties, taking into account:
  • The consultancy nature of the Services (advisory, not implementation)
  • The limited fees charged relative to potential business impact
  • The Client's ability to assess and manage risks
  • The availability and cost of professional indemnity insurance in the consultancy market
10.6 Client Mitigation Duty
The Client acknowledges that:
  • My Services provide recommendations, not guarantees
  • Implementation decisions and ongoing compliance are the Client's responsibility
  • The Client should seek legal advice on policy implementation where appropriate
  • The Client should maintain their own risk management and insurance
11. Insurance
Current Status: As a pre-revenue business, I do not currently hold professional indemnity insurance. I intend to obtain appropriate professional indemnity insurance before commencing paid client engagements.
For Prospective Clients: If you require evidence of insurance coverage before engaging my services, I will obtain appropriate coverage and provide certification before commencing work. This is particularly important for higher-value engagements (Pilot Blueprint and Retainer services).
Note: The limitation of liability provisions in Section 10 remain in effect regardless of insurance status, as they reflect the contractual allocation of risk between parties.
12. Warranties and Disclaimers
12.1 My Warranties
I warrant that:
  • I will perform Services with reasonable skill and care
  • Services will be provided by me personally or under my direct supervision
  • I have the right to provide the Services and license the Deliverables as described
  • I will comply with applicable laws in performing the Services
12.2 Client Warranties
The Client warrants that:
  • They have authority to engage my services
  • Information provided to me is accurate and complete
  • They will comply with applicable laws in implementing recommendations
12.3 Disclaimers
No Guarantees: I provide professional consultancy services based on my knowledge and experience. I do not guarantee:
  • Specific business outcomes or results
  • That governance frameworks will prevent all AI-related incidents
  • Regulatory approval or compliance (frameworks are designed to support compliance, but the Client is responsible for ensuring compliance)
  • That recommended approaches will suit all circumstances
Not Legal Advice: My Services constitute business consultancy, not legal advice. The Client should seek independent legal counsel for:
  • Legal interpretation of regulations
  • Contractual matters with their clients
  • Employment law implications of policies
  • Any matter requiring qualified legal opinion
Evolving Field: AI governance is a rapidly evolving field. Regulatory requirements, best practices, and technology landscapes may change. The Client is responsible for monitoring developments and updating their practices accordingly.
13. Term and Termination
13.1 Fixed-Price Services (Audit and Pilot Blueprint)
The Agreement continues until completion of Deliverables or earlier termination in accordance with these Terms.
13.2 Retainer Services
The Retainer continues on a month-to-month basis until terminated by either party.
13.3 Termination by Client
  • Fixed-Price Services: The Client may terminate by giving written notice. No refund of fees already paid unless I am in material breach of these Terms.
  • Retainer Services: Either party may terminate by giving 30 days' written notice. The Client remains liable for fees during the notice period.
13.4 Termination by Me
I may terminate immediately by written notice if:
  • The Client fails to pay undisputed fees within 14 days of due date
  • The Client is in material breach of these Terms and fails to remedy within 14 days of notice
  • The Client becomes insolvent, enters administration, or ceases trading
  • Continuing the engagement would breach my ethical or legal obligations
13.5 Effect of Termination
On termination:
  • The Client must immediately pay all outstanding fees for Services delivered to date
  • I will deliver any completed Deliverables upon receipt of payment
  • Confidentiality obligations continue
  • Clauses intended to survive (Intellectual Property, Confidentiality, Limitation of Liability, Governing Law) remain in effect
13.6 Work in Progress
If termination occurs mid-project (Pilot Blueprint):
  • I will invoice for work completed to date on a time-and-materials basis (£250/hour, capped at the total project fee)
  • I will provide Client with any work in progress in its current state
  • The Client receives a license only to completed Deliverables that have been paid for
14. Force Majeure
Neither party shall be liable for failure or delay in performing obligations due to circumstances beyond reasonable control, including but not limited to:
  • Acts of God, natural disasters, epidemics, pandemics
  • War, terrorism, civil unrest
  • Government actions, legal restrictions
  • Strikes, labor disputes (other than those involving my own staff, as I have none)
  • Failure of utilities, telecommunications, or third-party services
The affected party will notify the other promptly and use reasonable efforts to minimise delay. If force majeure continues for more than 60 days, either party may terminate the Agreement without liability.
15. Cancellation and Refunds
15.1 Shadow AI Audit
  • Cancellation Before Commencement: Full refund if cancelled before the discovery call is scheduled.
  • Cancellation After Commencement: No refund once the discovery call has taken place, as Services have been delivered.
15.2 Governance-Ready Pilot Blueprint
  • Cancellation Before Commencement: Full refund of deposit if cancelled before project kickoff.
  • Cancellation After Commencement:
  • Week 1: 25% refund of deposit (75% of deposit retained for work performed)
  • Week 2: No refund (deposit retained, balance not invoiced unless work justifies it)
  • Week 3 onwards: No refund; balance due for work performed
15.3 Momentum Advisory Retainer
Cancellation: Either party may cancel on 30 days' notice. No refund for the current month, as billed in advance. Unused time does not roll over.
15.4 Refund Processing
Approved refunds will be processed within 14 days via the original payment method.
16. Dispute Resolution
16.1 Good Faith Negotiation
If a dispute arises, the parties will first attempt to resolve it through good faith negotiation. Either party may request a meeting (in person or via video call) to discuss the dispute.
16.2 Mediation
If negotiation does not resolve the dispute within 30 days, the parties agree to attempt mediation before pursuing litigation. Mediation will be conducted by a mediator agreed by both parties, or failing agreement, appointed by the Centre for Effective Dispute Resolution (CEDR).
16.3 Litigation
If mediation is unsuccessful or inappropriate, disputes will be resolved through the courts of England and Wales in accordance with clause 17.
17. Governing Law and Jurisdiction
17.1 Governing Law
These Terms and any Agreement formed under them are governed by the laws of England and Wales.
17.2 Jurisdiction
The courts of England and Wales have exclusive jurisdiction to settle any dispute or claim arising from or in connection with these Terms or their subject matter.
17.3 Jurisdiction Note for Scottish or Northern Irish Clients
If the Client is based in Scotland or Northern Ireland, they may be able to bring proceedings in their local courts. However, I may elect to bring proceedings in England and Wales.
18. General Provisions
18.1 Entire Agreement
These Terms, together with any proposal, Statement of Work, or order confirmation, constitute the entire agreement between the parties and supersede all previous agreements, understandings, and representations.
18.2 Variations
No variation of these Terms is valid unless in writing and signed by both parties. I may update these Terms for future engagements by posting updated Terms on my website with a new "Last Updated" date.
18.3 Assignment
The Client may not assign or transfer their rights or obligations without my prior written consent. I may assign my rights and obligations with 30 days' notice to the Client (e.g., if I incorporate my business or transfer it to a successor).
18.4 No Partnership
Nothing in these Terms creates a partnership, joint venture, agency, or employment relationship between the parties.
18.5 Severability
If any provision of these Terms is held to be invalid or unenforceable, the remaining provisions will remain in full effect. The invalid provision will be replaced with a valid provision that achieves the original intent.
18.6 Waiver
Failure to enforce any right under these Terms does not constitute a waiver of that right.
18.7 Third Party Rights
No third party has any right to enforce these Terms under the Contracts (Rights of Third Parties) Act 1999.
18.8 Notices
Notices must be in writing and sent to the addresses at the beginning of these Terms. Email constitutes valid written notice. Notices are deemed received:
  • Email: When sent (if sent during business hours) or 9am the next Working Day (if sent outside business hours)
  • Post: 3 Working Days after posting
19. Sole Trader Specific Provisions
19.1 Business Structure Acknowledgment
The Client acknowledges that:
  • Michael MacDonald operates as a sole trader, not a limited company
  • "Brains Before Bots" is a trading name, not a separate legal entity
  • There is no legal separation between my business and personal assets
  • I have unlimited personal liability for contractual obligations
  • I do not have the limited liability protections of a limited company
19.2 Continuity of Service
As a sole trader, my ability to provide Services depends on my personal availability. I will:
  • Notify the Client promptly if circumstances prevent me from delivering Services
  • Use reasonable efforts to minimise disruption
  • Arrange suitable alternatives where possible (subject to Client approval)
In the event of my death or incapacity:
  • All ongoing obligations will terminate
  • The Client will not be liable for fees beyond work actually performed
  • My estate or representatives will deliver any completed work in progress
19.3 Succession Planning
If I incorporate my business or transfer it to a successor entity, I will provide 60 days' notice. The Client may choose to:
  • Continue the engagement with the new entity (under substantially similar terms)
  • Terminate without penalty
20. Contact Information
For questions about these Terms or to discuss an engagement:
Michael MacDonald, Trading as Brains Before Bots
Email: hello@brainsb4bots.com
Website: www.brainsb4bots.com
Post: 4th Floor, Silverstream House, 45 Fitzroy Street, Fitzrovia, London, W1T 6EB, United Kingdom
By engaging my Services, you acknowledge that you have read, understood, and agree to be bound by these Terms and Conditions.
© 2026 Michael MacDonald trading as Brains Before Bots. All rights reserved.