Sample SaaS Terms and Conditions Template

Last updated on 01 July 2022 by William Blesch (Legal and data protection research writer at TermsFeed)

Sample SaaS Terms and Conditions Template

This article will lead you through the basics of a SaaS Terms and Conditions agreement, explaining what one is and helping to answer common questions about what it should include.

We've also created a Sample SaaS Terms and Conditions Template, which you can download to assist you in designing your own.

Our Terms and Conditions Generator makes it easy to create a Terms and Conditions agreement for your business. Just follow these steps:

  1. At Step 1, select the Website option or the App option or both.
  2. TermsFeed Terms and Conditions Generator: Create Terms and Conditions - Step 1

  3. Answer some questions about your website or app.
  4. TermsFeed Terms and Conditions Generator: Answer questions about website - Step 2

  5. Answer some questions about your business
  6. TermsFeed Terms and Conditions Generator: Answer questions about business practices - Step 3

  7. Enter the email address where you'd like the T&C delivered and click "Generate."

    TermsFeed Terms and Conditions Generator: Enter your email address - Step 4

    You'll be able to instantly access and download the Terms & Conditions agreement.



What is a Terms and Conditions Agreement?

Whether you're a Software as a Service (SaaS) startup launching your first product or your company has been around for a while, it's essential to understand the importance of having a SaaS Terms and Conditions agreement.

Most likely, you have guidelines and rules in place to make sure that users interact with your service in a way that isn't harmful.

These rules and guidelines are typically outlined in a Terms and Condition agreement (Terms and Conditions agreement). You should consider that contract your friend. It safeguards your reputation and allows you to set the rules.

Those who don't have a Terms and Conditions agreement or don't include the proper clauses may find themselves in legal disputes that they might have otherwise avoided.

A Terms and Conditions agreement, often used interchangeably with Terms of Service (ToS) or Terms of Use (ToU), is a document that governs the contractual relationship between a service provider and its user.

It lays out the conditions of use for the service, including things like copyright restrictions, rules for interacting with other users on the website/app, and dispute resolution procedures.

Many SaaS providers that put up a Terms and Conditions agreement on their website include elements of a SaaS agreement in addition to all the clauses that standard Terms and Conditions agreements contain.

For example, most Terms and Conditions agreements will have a section that covers rules of conduct while users are on the website or app, the use of content (copyright), and rules associated with the suspension or cancellation of a user's account.

However, a SaaS Terms and Conditions agreement may also include information on its license agreement, reseller agreement, and subscription agreement. Additionally, some may even contain a service level agreement that defines the service level a customer can expect, the metrics through which they are measured, and any available remedies if the company fails to meet these expectations.

See how Adobe provides information in its Terms of Use on subscriptions to its services in the screenshot below:

Adobe General Terms of Use: Free memberships, offers and trials clause

Terms and Conditions agreements are the perfect place to put Information such as this, as your users will know to look there for such things.

Are Terms and Conditions Agreements Legally Required?

Are Terms and Conditions Agreements Legally Required?

In contrast with Privacy Policies, which are required by laws like the GDPR, CalOPPA, and many others, there's no law or regulation that demands businesses write and display a Terms and Conditions agreement.

With that said, it's still a best practice because Terms and Conditions agreements are advantageous to all businesses, and it's highly recommended that you have one.

For instance, there are several different ways that a correctly written agreement can help your business:

  • You can terminate an account if users misuse your website or mobile application in any way. If they abuse your service, you can use the Terms and Conditions agreement's Termination clause to terminate the abusive user's account.
  • You can use your Terms to inform users that they can upload content to your website or mobile application (create content, share it on your platform), but you have the right to remove any content they make if it violates copyright. If users register for an account and select a username, you can tell them that any usernames they choose are not allowed to infringe on anyone's trademarks (e.g., usernames such as Google or Facebook are not allowed).
  • You could add a clause in your Terms and Conditions to notify users that you can cancel certain orders if pricing is incorrect.

Why do SaaS Companies Need a Terms and Conditions Agreement?

Most people have seen Terms and Conditions agreements on various websites. Many of them ask users to accept the Terms of Service before registering or using the site itself.

However, many SaaS business owners don't realize how important that is.

With a proper Terms and Conditions agreement in place, a SaaS company can set expectations, retain control, and mitigate the possibility of any misuse of its services.

The bottom line here is that if you are delivering software or data from a central location and your customers have access to it through the internet, you should have a Terms and Conditions agreement with SaaS clauses built in.

Clauses for SaaS Terms and Conditions Agreements

Clauses for SaaS Terms and Conditions Agreements

Standard Terms and Conditions agreements usually have sections that contain clauses on the following:

  • Acceptance of terms
  • Copyright information
  • Intellectual property
  • Termination clause
  • Governing law
  • Links to other websites disclaimer
  • Content clause
  • A limitations and prohibited uses clause
  • Disclaimers and warranties
  • Changes to terms

However, SaaS companies may wish to add the following clauses and sections to their Terms and Conditions agreements:

  • Licensing information
  • Reseller agreement
  • Subscription agreement
  • Fees and payment

Let's look at each clause and see why it is important.

Acceptance of Terms

A Terms and Conditions agreement is not enforceable unless the user accepts it. Gaining user acceptance often occurs through clickwrap or browsewrap methods.

Here's how Intuit, an American financial software company with Saas products, words its Acceptance of Terms clause:

Intuit Terms of Service Introduction section

If your website or app allows users to share content or user-generated content, you must provide a way to report copyright infringement. This information can be included in your Terms and Conditions by adding a Copyright Infringement clause.

The Digital Millennium Copyright Act (DMCA) in the United States contains provisions that can make businesses liable for copyright infringement, even if they weren't responsible for posting the content themselves.

You can avoid this liability by providing a mechanism for third parties to report violations.

This is how ServiceNow writes its Copyright clause:

ServiceNow Terms of Use: Copyright Infringement clause

This can also be in your Terms and Conditions agreement as a DMCA clause.

Intellectual Property

Unlike the DMCA, the "Intellectual Property Rights" clause in a Terms and Conditions agreement focuses on your own intellectual property.

Copyrights, trademarks, and proprietary information are all legally protected. This section informs users that they cannot use the information. This is crucial because users can easily download your logo and graphics by clicking the right-click button and then doing with it what they want.

The clause regarding intellectual property informs the user that they cannot use your propert without your permission.

ServiceNow does this, and also goes on to cover its ServiceNow Core Technology, User Technology, ServiceNow Trademarks, Development Tools, Documentation, User Contributions, and Third Party Content in more detail within this section:

ServiceNow Terms of Use: Intellectual Property clause

Termination Clause

A termination clause is often included in a Terms and Conditions agreement to reduce liability. It explains how users can voluntarily delete their accounts.

It also details circumstances where the company will terminate a user's account unilaterally. The notification process for account termination is also described in this clause.

Square, Inc. makes it clear that it maintains the right to terminate a user account for any reason whatsoever:

Square Terms of Service: Modification and Termination clause

Governing Law

The governing law clause is a section in your Terms and Conditions agreement that dictates which jurisdiction's laws will be applied when it comes to any disputes between the parties involved in the agreement.

For example, DataDog's Terms are governed by the state of New York:

DataDog Terms of Use: Governing Law clause

This clause is essential because it can help to avoid potential conflicts down the road by choosing a jurisdiction whose legal system with which you're comfortable.

In general, you should have a clause about links in your Terms and Conditions agreement to guard against any potential legal issues that could arise from users accessing other websites from yours.

Square, Inc. ensures that users know they visit other sites accessed through links on its website at their own risk:

Square Terms of Service: Third Party Services and Links to Other Websites clause

Content Clause

If your website or mobile app permits users to create content and make that content public to other users, a Content clause will inform users that they own the rights to the content they have created.

Additionally, this clause typically states that the users must grant you (the owner of the website or mobile app) a license to share the content on your website/mobile application and make it available for other users.

Limitations and Prohibited Uses Clause

In general, a Terms and Conditions agreement should have a clause that limits certain activities on your website or app. While some of these prohibitions will be obvious (for example, no illegal activity), others may not be as apparent (for example, you don't want users spamming people).

You should decide what things you won't allow.

For example, you may wish to prohibit:

  • Violations of the law
  • Abusive behavior
  • Anything that could put your company's reputation or intellectual property at risk

Here's how Cloudflare writes this clause:

Cloudflare Terms of Use: Prohibited Uses clause

Disclaimer of Warranties

Your business could theoretically be at risk of liability if, say, your website or app happened to go down and wasn't available for a brief time. In a scenario like that, a Disclaimers and Warranties clause in your Terms and Conditions agreement can prevent you from being liable.

Splunk lets users know that all use of the site is at the user's own risk:

Splunk Terms of Use: DIsclaimer of Warranties clause

You could add language saying that you can't guarantee your services will always be available or in working condition. This is much the same as saying that the user can access services "as readily available."

Changes to Terms

You can notify users when the Terms and Conditions agreement has been modified by using a "Changes," "Modifications," or "Amendments" clause.

Many businesses opt to inform customers via email or banner announcements on their websites.

Not only should you include the manner in which you will announce any changes to the agreement, but you also need to indicate that you have the right to modify the Terms and Conditions.

Although it might seem obvious to you, it could be a liability for your business if users expect that the Terms and Conditions will never change.

Here's how Dropbox writes its Modifications clause:

Dropbox Terms of Service: Modifications clause

Licensing Information

A licensing clause permits your users to use your services only for a specified purpose. You will need to outline the following:

  • The ways that a user can use your service
  • Any license restrictions
  • Any trademarks or intellectual property you wish to protect

Dropbox gives users of its software products a limited license to access its services as seen below:

Dropbox Terms of Service: Software clause

Reseller Agreement

If your SaaS company grants other businesses the right to resell your services and enter into a contract with a third party as the principal for providing your services, you likely need a reseller agreement.

Some SaaS companies include a clause in their Terms and Conditions agreement which covers reselling their services.

For instance, Monday uses the following clause in its Terms of Service:

Monday Terms of Service: Payment Through Reseller clause

Subscription Agreement

In the same way you might wish to include a reseller agreement within your Terms and Conditions agreement, you might also want to put in a subscription agreement.

SaaS subscription agreements cover the buyer's rights, limitations, and how they can use your application. These agreements are intended to be used in cases where both parties sign the documents. However, some still put the language in their Terms and Conditions agreements to be up-front and fully transparent.

Monday covers many aspects of its subscription agreement, including the subscription form, term, fees, taxes, upgrade, adding users, excessive usage, billing, auto-renewal, discounts and promotions, and credits:

Monday Terms of Service: Subscription Term, Renewal and Fees Payment clause

Fees and Payment

Most SaaS products run on some type of subscription service. If that's the case for yours, then you can add information in your Terms and Conditions agreement, which note the following:

  • A listing of your fees
  • What third-party fees are covered (if applicable)
  • How users can pay and what methods of payment you accept

Here's how New Relic provides this information to its paid subscribers:

New Relic Terms of Service: Fees clause

Now that you know what you should put in your SaaS Terms and Conditions agreement, let's take a look at how you can get your users to agree to it. Without agreement, you cannot enforce your Terms and Conditions.

Enforcing Your SaaS Terms and Conditions Agreement

Enforcing Your SaaS Terms and Conditions Agreement

Two different types of enforcement can be used, depending on the specifics of your Terms and Conditions agreement. They include informal dispute resolution and formal legal action.

Before either can take place, you have to ensure your Terms and Conditions agreement is legally binding. To do that, you must:

  • Display your Terms and Conditions agreement in a prominent place on your website, and
  • Get the user to consent or agree to the terms in that agreement

Now, it is important to display your Terms and Conditions agreement in a conspicuous location on your website in order for everyone to see it, know it exists, and have access. If you bury the document somewhere on your website that's hard to find, you could harm your case during mediation or legal disputes.

Another reason to make sure it's placed in an obvious location is that it makes it easier for you to obtain the necessary consent to your Terms.

You should include a link to your Terms and Conditions on your account registration page. Most companies also place a link to their Terms and Conditions agreement somewhere in the website footer, which users will see on every page.

Finally, you should use Clickwrap to get users to accept your Terms and Conditions. Clickwrap is when your users agree to take action, such as clicking to place a tick or check mark inside an empty box, like so:

Firebase's Updated Terms notification using clickwrap - box checked

Additionally, you need to keep a record of the consent users provide to be able to prove you have it if necessary.

Summary of a SaaS Terms and Conditions Agreement

As a SaaS business owner, you must be sure that your Terms and Conditions agreement is easily accessible on all of the company's digital properties.

The way in which you present this contract sets the tone for how users interact with your products. It also helps ensure they know what they can do with it before downloading or signing up for any service, so there are no surprises down the line.

Crafting a Terms and Conditions agreement is an important step to take as part of running your business, so remember to use clauses specific to your SaaS service or product, make them easy-to-read, informative, and concise. And, always get explicit agreement to make your Terms and Conditions legally binding.

In conclusion, when you're ready to begin crafting your own customized SaaS Terms and Conditions agreement, we invite you to view our sample agreement or use our Terms and Conditions Generator to get the ball rolling.

After you have created your Terms and Conditions agreement, make sure to review them every few months to ensure that they are current.

Download Sample SaaS Terms and Conditions Template

Generate Terms & Conditions in just a few minutes

This free Sample SaaS Terms and Conditions Template is available for download and includes these sections:

  • Introduction
  • Definitions
  • Acknowledgment
  • User Accounts
  • Content
  • Copyright Policy
  • Intellectual Property
  • User Feedback
  • Links to Other Websites
  • Termination
  • Limitation of Liability
  • "AS IS" and "AS AVAILABLE" Disclaimer
  • Governing Law
  • Disputes Resolution
  • Severability and Waiver
  • Changes
  • Contact Information

Sample SaaS Terms and Conditions Template (HTML Text Download)

You can download the Sample Terms and Conditions Template as HTML code below. Copy it from the box field below (right-click > Select All and then Copy-paste) and then paste it on your website pages.

Sample SaaS Terms and Conditions Template (PDF Download)

Download the Sample SaaS Terms & Conditions Template as a PDF file

Sample SaaS Terms and Conditions Template (DOCX Download)

Download the Sample SaaS Terms & Conditions Template as a DOCX file

Sample SaaS Terms and Conditions Template (Google Docs Download)

Download the Sample SaaS Terms & Conditions Template as a Google Docs Document

Sample SaaS Terms and Conditions Template

More T&Cs Templates

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Sample Ecommerce Terms & Conditions Template A Terms and Conditions agreement for your Ecommerce Store.
Sample EULA Template An End-User License Agreement for mobile apps.

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William Blesch

William Blesch

Legal and data protection research writer at TermsFeed

This article is not a substitute for professional legal advice. This article does not create an attorney-client relationship, nor is it a solicitation to offer legal advice.