What is a Master SaaS Agreement?
A Master SaaS (Software-as-a-Service) agreement is a legal document that acts as a written agreement/contract between a SaaS provider and its buyer or end user.
It clearly mentions what the SaaS vendor’s product will provide and what the end user or customer company should expect from the provider to avoid any future legal disputes.
The agreement will also include detailed terms and conditions for the customers regarding their control and access over the software while outlining the subscription service and payment model adopted for the SaaS product.
Every Software-As-A-Service (SaaS) provider should explain to customers what services are provided to them through the SaaS agreement. The SaaS agreement is a complex document that offers detailed terms of usage for the customers. It also outlines the roles and responsibilities of the service provider. But many SaaS businesses oftentimes lack the knowledge necessary to draft a SaaS agreement/contract.
SaaS agreements include complex legal material. Drafting an all-inclusive agreement can be tricky, hence it is always advisable to use a comprehensive legally vetted SaaS agreement template for your business.
This article covers all you need to know about a SaaS agreement, including what it should contain, its types, how to write them, and how Revv’s legally binding templates can make the overall experience seamless.
Benefits of Master SaaS Service Agreements
A master SaaS agreement is a document that details the involved parties' obligations and performance goals. A well-structured SaaS agreement may not only benefit a software company but also helps all the parties involved in the agreement to reach common ground on various aspects.
A master SaaS agreement acts as a self-help manual for the software service provider to streamline their operations. Let’s explore some of the benefits of using a master SaaS service agreement:
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Aids businesses in avoiding legal problems
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Expedites the negotiation process
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Helps in reducing the risk of litigation
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It safeguards the rights of all the parties involved in the contract
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Foresees potential problems and specifies them in the SaaS agreement in advance
A well-drafted Master SaaS service agreement serves as a model for further agreements. It decides who is at fault when a disagreement occurs.
Why should you use a Master SaaS Agreement template?
Using a Master SaaS agreement template is beneficial because it can help ensure that you present the right information in the clearest way.
1. Avoids complexities in agreement creation
A SaaS agreement needs to cover many crucial aspects like
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Agreement terms
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Description of services
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Provisions for support and maintenance
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Clauses related to how to use customer data and other personal information
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Terms on retaining proprietary and intellectual property (IP) terms
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Limitations of liability, and many more.
While building such an intricate document, there are chances that you complicate all the information which might lead to misunderstandings in the future. With a well-formulated template, you can circumvent this issue. It offers legal and reasonable dispute resolution to service vendor party and their users or customers.
2. Prevents legal complications arising from intellectual property rights (IPR)
Legal clauses can get tricky for a SaaS agreement. Any modifications or improvements made to your software system can result in a new intellectual property and who owns the rights. A template gives you the luxury to leverage its well-drafted legal/law framework and build on it further. This way, you can save some effort and avoid any legal challenges arising from it prior.
3. Templates ensure uniformity and consistency
It is normal for SaaS companies to create separate SaaS agreements for different customer requirements. While creating SaaS agreements from scratch, there are chances of missing out to include important elements or making errors. But using SaaS agreement templates assures consistency in your communication and makes the document error-free.
4. Simple and quick customizations
There are certain moving parts in a SaaS agreement. The sections describing governing laws, payment terms, the number of arbitrators involved, etc. could change with respect to each agreement. By using templates, a user can readily make these changes on each page of their documents to suit their needs, as they are editable and easy to use.
What should be included in a Master SaaS Agreement Sample template?
From prior sections, you know about SaaS agreements, their benefits, and the related advantages of using an agreement template. But it might still be challenging to design a software services agreement if you are unaware of the specifics that need to be included in your SaaS contract.
Even though the clauses or the content material included in a SaaS contract may vary depending on your company, and the products and services you offer, any SaaS agreement/contract must feature these components:
Introduction
Start your software service contract with a brief introduction about the software service provider, customer details, their respective addresses, date and project schedule, the type of service level agreement the parties shall enter, etc.
Terms and conditions
1. Services
This segment explains in detail all the services that the software company will offer to the customer including the additional legal obligations, maintenance, and support services, related notice period, etc.
2. Platform access and authorized user
This section clearly states the terms and conditions for the
3. Confidentiality
This part of the template states the software company’s surety to keep the proprietary information, trade secrets, confidential data, and other personal information of the customer private and not to divulge any details to any third parties. Here, the software service provider also acknowledges that the customer/client information will only be utilized for business needs.
4. Proprietary rights
In this part, you have to explain how the customer company should handle the intellectual property rights, how the software company should manage confidential data, the ownership of the service product, etc.
5. Payment terms
Payment terms inform users about how much they need to pay, when, and how. This section addresses how often billing will occur for a SaaS subscription and is sent to the user party. Most subscriptions offer monthly, annual, or one-time purchase options. Semi-annual and multi-year billing are also possibilities.
6. Security
This segment explains all the compliance checks and other governing laws that will be followed for the service provided.
7. Termination
A software service agreement can end at any time during the project. Termination of an agreement can happen due to reasons such as:
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Timelines not being met by the software company
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Poor service or operational quality of the product delivered
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Client or company not providing assured support during the project
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Payment defaults, and more.
Either party to the agreement may terminate the agreement upon written notice and this section details the status quo post-termination.
8. Indemnification
Indemnification in general is a party's promise to hold another party legally blameless—or not accountable—for possible breach or damages in an agreement. So in this section, you shall mention in detail exactly what kind of breach or losses are not liable in the service contract.
9. Limitation of liability
A limitation of liability agreement shields SaaS vendors from risk by contractually prohibiting end users/customers from suing them for specific damages. For instance, it becomes difficult for your business to recover damages from the SaaS service company, if the software fails and causes harm. Basically in this section, you have to mention the ultimate amount of damages that a vendor party might possibly be responsible for under the agreement.
10. Arbitration
Arbitration is like an out-of-court dispute resolution where an impartial third party, known as an arbitrator, hears evidence and provides a binding ruling. Any disputes between the parties resulting from or connected to the software service agreement are resolved in accordance with this provision.
Acceptance and signatures
If either party or all the parties involved in the SaaS contract are in agreement with the conditions mentioned in their service agreement document, then they can readily accept and sign it. It further makes the contract legally valid.
Easily create SaaS agreements with Revv’s Master SaaS Agreement Template
A SaaS agreement is an integral part of any SaaS provider as it provides an accountable framework for the services to be provided. It is a legal-heavy document, which will govern future transactions or future agreements as well. Hence while using a template for your SaaS agreements, you must ensure that they are legally vetted.
Give a personal touch to your entire agreement
Revv’s software services agreement template can be completely customized to your needs with the help of the document editor. With a simple drag-and-drop feature, you will be able to add images, text, tables, integrate payment systems, and more.
Hassle-free approval and review process
SaaS agreements contain a lot of legal information as well as other confidential data in it. Oftentimes these documents need to be thoroughly vetted and approved by the SaaS company’s team head or manager before sending to customers for signatures.
With Revv you can send any SaaS agreement to the approval manager or other team members for their review and approval using the Check and send for internal approval feature.
Make your SaaS agreement error-free with instant collaboration with teammates
While creating multiple SaaS agreements on a daily basis, mistakes may happen if you have given the wrong information or customer data, addressed to the wrong company, or have used an old agreement template with old price details, etc. Avoid all these human errors and make your SaaS agreements error-free with the Notes feature. It is a real-time collaboration feature provided by Revv. If you want your SaaS agreement to be thoroughly reviewed by your peers, you can simply tag your colleague with @mentions. The tagged person will receive an email notification for the same.
Access your SaaS agreement from anywhere
You can access your SaaS agreements anytime, anywhere, and from any device since Revv is a cloud-based document management and eSign platform.
Revv eSignatures follow all compliance measures
Revv makes your software service agreements legally binding with its bank-grade eSignatures. It follows all local and global laws such as ESIGN Act, UETA, and eIDAS, among others. They are also encrypted with Amazon Web Services Server-Side Encryption (AWS SSE-S3), and certified with AWS global cloud certification – such as Cloud Security Alliance Controls (CSA), SOC 1: Audit Controls Report (SOC 1), SOC 2: Security, Availability & Confidentiality Report (SOC 2), and ISO 27001 Security Management Controls.
Easy to track activity in service agreement documents
With Revv, you can track real-time activity for all your software service documents from the Activity tracking feature.
Get instant notifications
Revv sends auto-generated email notifications to both the sender (software service company) and recipients (customers) notifying them of the actions to be taken on the service agreement document.
Legally binding audit trails
When your company is handling multiple software service agreements, you need to be cautious about the legal responsibilities if they are tampered with by any chance. To avoid complexities involved in the backtracking of SaaS agreement documents or any unfortunate event leading to legal suits, Revv generates an electronic copy of audit trails in the form of an Evidence Summary for all eSigned agreement documents.
Evidence Summary is a digital certificate that chronologically records each action taken during the signing process of the service document. It includes – the signer’s information, date and time stamp of each action taken by the signer, IP address of the signer, and other details that act as legal proof. A user can download the certificate for free.
Design legally sound Master SaaS Agreement with Revv. Sign up today or schedule a demo with our experts!
Frequently asked questions
What should be included in a SaaS agreement?
A service-level agreement shall include the following elements - Software uptime assurance, KPIs and performance measures, Response speed for urgent problems, and all-around assistance, Compliance measures, and Exclusions for which the SaaS provider will not be obligated to pay the penalty. The agreement content is including but not limited to the above-mentioned clauses.
What is a SaaS service-level agreement (SLA)?
SaaS service-level agreements or SLAs clearly define the services a software company provides and how its customers should utilize or access them. The terms and conditions for hosting the SaaS software, the software support and maintenance services, and other things applicable are also included in the service-level agreement.
Do you need a EULA for SaaS?
EULA stands for End-User License Agreement. It is like a licensing contract entered between you (a SaaS company) and the purchaser of your software. Since SaaS companies don't give customers a copy of the software, a EULA is not required. But if the company provides a mobile app for download along with the SaaS application then you need to formulate EULA. EULA provides license-to-use permission for the app.