SaaS Agreements – FAQs – Applicable Law and Jurisdiction

It is important to understand the difference between applicable law and applicable jurisdiction when negotiating a SaaS agreement. Applicable law specifies which country’s laws will apply to your SaaS agreement. Jurisdiction specifies which courts will have authority to deal with a dispute. Usually a UK SaaS agreement will specify the laws of England and Wales as the applicable law and the courts of England will have jurisdiction.

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SaaS Agreements – The Advantages of using English Law

If you are a SaaS supplier who often deals with customers located outside of the UK, you will have experienced customers insisting on their local law applying to your SaaS agreement. Many SaaS suppliers agree to this by simply removing “English law” from the SaaS agreement and replacing it with, for example, “German law” unaware of the consequences this will have upon their SaaS terms and conditions.

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SaaS Agreements – Reseller/Distribution – Terms to Include

When using a local partner to resell your SaaS software to customers outside of the countries in which you are based, you will need to have a distributor/reseller agreement in place between yourself and each distributor/reseller. This will in part mirror your standard SaaS terms and conditions but will also need to include additional clauses to cover the issues set out below. Applicable Law and Language Usually your reseller will be located in another country. The reseller will be selling your SaaS software to its customers using its own local

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