Q&A With SaaS Attorney Chip Cooper: What are The Types of SaaS Agreements?

As a SaaS attorney, I’ve been asked a lot of questions about SaaS agreements and SaaS reseller agreements. This Q&A is based on actual conversations as a SaaS attorney with clients.

Q: What are The Types of SaaS Agreements for users?

There are two basic types of SaaS agreements for users, depending on how they’re used and what the market expects and will accept.

If your SaaS service is at a relatively low price point, and you want to contract online, the so-called “click-wrapped” agreement is the right approach. The click-wraped agreement is presented online, usually in a scroll box, as part of the registration process. The click-wrapped agreement is usually relativel short. Ease of contract administration is a key benefit, because the click-wrapped agreement is essentially “take it or leave it”.

If your SaaS service is offered at a relatively high price point and/or tailored for the corporate market (as distingushed from the small business or consumer market), then the traditional paper-based, signed agreement is the correct approach. This form of SaaS agreement is significanlty more comprehensive than the click-wrapped form. You will probably have to negotiate this type of agreement, so contract formation can be more involved that it would be with a click-wrapped agreement.

So, the bottom line is, your market will determine the type of SaaS user agreement.

Go to our SaaS lawyer page.

Copyright © 2011 Chip Cooper

This article is provided for educational and informative purposes only. This information does not constitute legal advice, and should not be construed as such.

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