SaaS Agreements – Terms and Conditions – Online Sales

SaaS Agreements – Online Sales – Terms and Conditions

Many SaaS suppliers now conclude sales of SaaS products with customers online, usually by having customers “click” acceptance of the supplier’s terms and conditions on their website. When concluding online sales, SaaS suppliers need to ensure that their online terms and conditions include the following information, in order to create a legally enforceable SaaS agreement with the customer.

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SaaS Agreements – SLA – Terms to Include

The above is a general guide to the terms to include in a SLA for a SaaS agreement. The degree of detail that you provide will largely depend upon the following:

The type of SaaS products and services you are supplying;
How much the customer pays for the SaaS product and services;
Whether the SaaS product is business critical i.e. online banking;
What is standard in that particular business area.

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SaaS Agreements – FAQs – Hosting

Under the terms of your SaaS agreement you will be storing, processing and publishing customer content and data on the Internet using servers located and operated at the data centre of a third party. The third party operating the servers is known as a hosting provider. The hosting services are provided from a data centre owned and operated by the hosting provider.

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SaaS Agreements – Need for an Escrow Agreement

Having an escrow agreement in place protects all parties involved in the development, supply and use of business critical SaaS applications. It provides customers with peace of mind for securing long-term availability of a critical SaaS application by enabling customers to update software and fix any bugs even if the supplier is no longer able to support them.

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