What is a SaaS agreement?
A SaaS agreement is a contract between a software provider and a customer. It defines how software services are delivered, subscription fees, user access rights, service levels, data handling practices, termination rights, and legal responsibilities of both parties.
What to review before signing a SaaS agreement
Risks to watch for
Common mistakes
- Ignoring renewal and cancellation terms.
- Not reviewing data ownership provisions.
- Assuming service availability is guaranteed.
- Failing to review liability limitations.
- Overlooking security and compliance obligations.
Real-world example
A company subscribes to a SaaS platform without reviewing the cancellation terms. The agreement automatically renews for another year unless notice is provided 60 days before expiration. The company misses the deadline and incurs unexpected subscription costs.
FAQ
Who owns data stored in a SaaS platform?
The agreement should clearly define ownership, access rights, and data portability. Customers should review these provisions carefully.
What is an SLA?
A Service Level Agreement defines availability targets, support commitments, response times, and remedies for service failures.
Can SaaS pricing change during the contract?
Many agreements allow pricing adjustments at renewal or after notice. Review these clauses carefully.
What happens if the provider suffers a data breach?
The agreement should describe notification obligations, security responsibilities, and liability allocation.
Can Lawyerless review my SaaS agreement?
Yes. You can upload or paste your SaaS agreement and receive a plain-language explanation of key terms and risks.