SaaS Agreements – Brexit – Amendments to Terms and Conditions

SaaS suppliers and SaaS customers are becoming increasingly concerned about the effect of “Brexit” upon the terms of their existing SaaS agreements, particularly where contracts are subject to English law or SaaS suppliers or customers are located within the UK. Below is a summary of the main issues that SaaS suppliers need to be aware of that may result in problems arising now or in the future with the terms of their existing SaaS agreements.

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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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