SaaS Agreements – Terms and Conditions – Limitation of Liability

The terms of a SaaS agreement should always include a clause limiting the SaaS supplier’s liability to the customer. The specific details of the liability clause will depend upon the type of SaaS software being supplied, the value of the SaaS agreement and what is usual in the business sector in which the parties operate.
The following issues should be covered by the limitation of liability clause in most SaaS agreements.

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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 Agreement – Terms and Conditions – Limitation of Liability Invalid

Do you always ensure that your SaaS terms apply to contracts with customers. If not, the High Court has decided in Ghsp Inc v Ab Electronic Ltd that where two companies fail to agree on whose terms and conditions shall apply to an agreement, neither company’s terms can be enforced. This resulted in the supplier having unlimited liability to the customer for defective parts it had supplied.

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SaaS Agreements – Freedom of Information Act – Disclosure

Last week the Information Tribunal ordered a Government department to publish specific details of a major IT contract with Atos Origin, following an individual’s request for information under the Freedom of Information Act (FOI). Pursuant to section 43 of the FOI, the Government body had refused to disclose the material requested on the basis that it was a trade secret and that disclosure would damage the commercial interests of the parties.

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Bodle Law