What To Know About SaaS Terms & Conditions

Contents

SaaS Terms and Conditions is a legal document that sets out the terms and conditions by which users can use your Software-as-a-Service (SaaS) platform. It is an important contract that clarifies acceptable uses of your software, details the software’s features and disclaimers, and can help to limit your liability to users if something goes wrong.

When Do I Need SaaS Terms And Conditions?

If you’ve created a SaaS product, you should ensure you have terms and conditions in place before launching. If your SaaS product is also available to users via a desktop installation, mobile app or otherwise, you should ensure the terms and conditions are accessible to those users.

How Do I Use It?

You should require your users to agree to your SaaS T&Cs before they use your software or register a user account. In addition, if there are any particularly important clauses, disclaimers or risks associated with your software, it’s a good idea to display the SaaS T&Cs in a prominent position so that your users are unequivocally aware of them.

Usually, you can use a simple check box for users to select to that states “By signing up to the SaaS subscription, I agree to the Terms and Conditions & Privacy Policy”.

SaaS Terms And Conditions Example

Will has created a software tool that allows users to manage employee work rosters. There is a 30 day free trial and then a monthly subscription fee if users want to continue using it. Will wants to make sure that he has the right to revoke access to any users that haven’t paid their subscription. To achieve this, Will requires all users to create an account and check a box stating that the user agrees to the SaaS T&Cs.

The T&Cs contains a clause giving Will the right to revoke the accounts of any users who fail to pay, together with other details about how the software can and cannot be used, limitations and disclaimers about the software, and a privacy policy detailing how information uploaded to the system will be handled by the software.

What’s In It?

Here are the sorts of issues that are typically covered in your SaaS T&Cs.

Acceptable Use – Do you want to set any limitations on the way users can use your SaaS (for example, to distribute junk mail or spam)?
User Content – Will you allow users to upload content to your SaaS? If so, you should make sure that the users promise that they have the rights to the content. Also, you need to think about any restrictions of the sort of content they can upload (eg illegal or offensive materials).
Payment – Are payment made through your platform? If so, what is the payment process? What is your refund policy?
Service Limitations – What level of service can you promise? Do you want to set any limitations on the level or services users can expect? What happens if there is downtime or if the service has bugs? What happens if your software is hacked and user data is lost or stolen?
Disclaimers & Liability Limitations – To what extent would you be liable if something goes wrong or someone suffers loss as a result of using the SaaS?
Privacy – How do you collect and use users personal information? Who can the user contact if they have questions or requests in relation to their personal information?

Need Help With A SaaS Terms And Conditions?

Putting together SaaS T&Cs can seem like a daunting process, as it’s hard to know what to include and how to word it. It’s a good idea to get a lawyer to assist you with this process, as it’s a one-off cost that can save you from disputes and liability in the long run.

At Sprintlaw, we have a team of experienced lawyers can assist you with drafting or reviewing SaaS T&Cs. Get in contact with one of our consultants for a no-obligation chat on how we can help you put together SaaS T&Cs and help with any other legal issues your business may have.

Minna Boyle

Minna is the legal operations manager at Sprintlaw. After receiving a law degree from Macquarie University and working at a top tier law firm, Minna now manages the legal operations at Sprintlaw and puts a focus on making legal knowledge more accessible to the public.