e-Sign with Lawpath

SaaS Agreement (Software as a Service)

A Software-as-a-Service (SaaS) Agreement is a contract between suppliers and customers of software.

starstarstarstarstar_half

4.1 (32 reviews)

alarm_on

Last updated December 20, 2024

edit

Under 10 minutes

location_on

Suitable for Australia

Get 1st document free

Written by

Edwin Montoya Zorrilla

Reviewed by

Damin Murdock

Document Overview

A software as a service (SaaS) agreement is an online model for suppliers (providers) and customers (users) of software. SaaS agreements represent a shift away from traditional software licences which may have involved up-front payments and time-consuming updating processes.

SaaS can help you downsize your in-house IT, giving you more time and flexibility to establish other areas of your business such as HR and marketing.

To ensure that you are up to date with modern business practices, adopting SaaS applications can allow you to communicate seamlessly with vendors, subcontractors and consumers. This will expand your business touchpoints.

Lawpath itself is modelled on Saas modes of service delivery.

The Importance of a SaaS agreement

An effective SaaS agreement describes the service level, disclaimers and liabilities. By explaining the service level, it sets out the goals and limits of service for the user. For example, a well-described service level may clarify the minimum uptime of the service, how it is measured or the support response time for the service. 

How Do They Work?

SaaS users subscribe to an application, where information is usually backed up by an online cloud server. Since this is only a software subscription and not a licence, the provider charges a fee for access. This document contains the terms that regulate how the provider will make the software accessible for the customer. This document also allows providers to cater the terms of the SaaS agreement to their service. For example, the provider can customise the provisions that outline maintenance, support services, service level and setup of the service for the user to fit the needs of their service.


The Legal Risk Score of a SaaS Agreement (Software as a Service) Template

Our legal team have marked this document as low risk considering:

  • The agreement provides the Company with the ability to unilaterally change fees and introduce new charges, which could lead to unexpected financial obligations for the user.
  • The user is required to ensure that their use of the services complies with all applicable laws and regulations, which places the burden of legal compliance entirely on the user.
  • The document allows the Company extensive rights to use and disclose aggregate data derived from the user's data, which might raise concerns about data privacy and commercial confidentiality.
Get started

SaaS Agreement (Software as a Service) Checklist

Complete your free SaaS Agreement (Software as a Service) with our checklist

Ensure Proper Signatures

Make sure that the document is signed by authorized representatives of both the Company and the Customer to legally bind both parties.

Verify Contact Information

Confirm that all contact information for both parties, including addresses, phone numbers, and emails, is correct and current to facilitate effective communication.

Review Service Specifications

Double-check the details in Schedule 1 and Schedule 2 to ensure that the services, fees, and terms are accurately captured and understood.

Schedule Compliance Checks

Set up periodic reviews to ensure that all parties are adhering to the terms of the agreement, especially in relation to data handling and fee adjustments.

Get started

Benefits of SaaS for customers

  • With SaaS, there is no need to install new software so you have the opportunity of improved IT operations without stressful costs and management concerns. Updates can also be installed periodically on an automatic basis, or as required.
  • It’s accessible. Upon subscription, users are normally asked to create a quick online account with the SaaS provider. The SaaS software can be accessed and opened on any computer or internet enabled device. This helps to avoid the trouble of having only a couple of primary computers with access.
  • Having a maintenance clause within the agreement will also simplify the need to synchronise any updates or problems with the software on your own, as these will be transferred to the supplier. Under a maintenance clause, the suppliers will agree to resolve any IT issues for you.

What does this SaaS Agreement cover?

  • SaaS Services and Support
  • Restrictions and Responsibilities
  • Confidentiality and Proprietary Rights
  • Payment of Fees
  • Term and Termination
  • Warranty and Disclaimer
  • Indemnity
  • Limitation on liability
  • General Terms
  • Statement of Work
  • Service Level Terms
  • Support Terms
  • Order Form

Further information: 

It's never been so easy

laptop_mac

Sign-up to a free Lawpath account

Get started and we’ll take care of you. It’s that easy.

gavel
person_outline

Collaborate with e-Sign and Sharing

Having access to your legal documents has never been easier. You can request e-signature, share the document and download for an efficient collaboration.

Create unlimited legal documents and eSignatures for only $39/month.

Upgrade to a Lawpath legal plan to boost your new business.

View plans & pricing
trust-mark

Here's what people say about Lawpath’s SaaS Agreement (Software as a Service)

Reviews are managed by BazaarVoice and comply with the BazaarVoice Authenticity Policy. Reviews are independently verified by BazaarVoice and detail our customers' real experiences.

Looking for more documents?

Browse all legal documents