3 Unique Elements of SAAS Contracts

If you have ever clicked “Accept” for terms and conditions associated with a software application, then you have seen a SAAS (Software as a Service) contract. This type of contract is a contract between a software developer and its user. While a SAAS contract includes many of the same provisions and stipulations as a regular contract, it also has many criteria unique to technology-driven applications.

So what exactly makes a SAAS contract different from a standard business contract? We detail three items that answer that question below:

1) A SAAS Contract Dictates HOW You Use Something

Unlike a standard contract which details length of term, timing and form for payment, and rights and duties of the parties, a SAAS contract is an agreement on how you use the application, with little emphasis (if any) on “when and where.” A good SAAS contract will deny responsibility for any inappropriate use of the program.

2) Privacy Policy

Online software and applications often store information. While it is reassuring to know that your data is easily accessible no matter where you may be, storing information online can leave your data vulnerable to security breaches. A SAAS contract should include a provision on the level of security a user may expect. To protect the software provider, a SAAS contract should define the type of information that will be stored, the level of security that will be met, and the remedy and damages for a security breach.

3) Accessibility & Performance

A solid SAAS agreement will outline what you as a user can expect from the software. Much like posting “operating hours” for a brick-and-mortar business, your SAAS agreement may describe times the application will be “down” for maintenance and updates, or just explain that the accessibility may vary. If you are creating a SAAS fo your company, you should be mindful to include that you’ll make every effort to keep the service available but that you are not responsible for downtime during maintenance or if a third party interferes with the product.

Seek Qualified Legal Help

The above items in no way cover all of the pertinent items that should be included in a strong SAAS contract. To protect your company will require the help of an attorney experienced in drafting business agreements that satisfy ever-changing technology advances.

The legal team at J. Muir & Associates can help. We boast a team of knowledgeable business attorneys who can ensure that all of the applicable privacy policies, terms and conditions, and user agreements in your SAAS contract cover everything you need them to. Don’t go at this alone. Give us a call at 1-786-533-1100 to speak to someone today!

Written by Jane Muir

Jane Muir