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Free Software as a Service (SaaS) Agreement Template

Free SaaS Agreement Template in Word. Define licensing, SLA, and terms for your software business. Pro-grade boilerplate vetted by certified domain experts. Use it as a raw document, or automate it in Glomiq to eliminate manual copy-pasting.

Verified Compliance Document
Vetted by: Ananya Sen, Advocate
GLOMIQ DRAFT
SOFTWARE AS A SERVICE (SAAS) AGREEMENT
This Software as a Service Agreement ("Agreement") is effective [DATE] by and between [COMPANY_NAME] ("Company") and [CUSTOMER_NAME] ("Customer").
1. Provision of Service. Subject to the terms and conditions of this Agreement, Company grants Customer a non-exclusive, non-transferable right to access and use the Company's cloud-based software platform (the "Service") during the Term solely for Customer's internal business operations.
2. Fees and Payment. Customer will pay the fees specified in the attached Order Form. Fees are billed [BILLING_CYCLE] in advance. Payment is due [PAYMENT_TERMS_DAYS] days from the invoice date. All fees are non-refundable.
3. Customer Data. Customer retains all right, title, and interest in and to any data, information, or materials provided by Customer to the Service ("Customer Data"). Company may use Customer Data solely to provide and improve the Service. Company shall implement reasonable security measures to protect Customer Data.
4. Service Level Agreement (SLA). Company shall use commercially reasonable efforts to make the Service available 99.9% of the time, excluding scheduled maintenance. If uptime falls below 99.9%, Customer may be eligible for a service credit as defined in the SLA policy.
5. Term and Termination. The initial term of this Agreement shall be [INITIAL_TERM_MONTHS] months. This Agreement will automatically renew for successive terms of equal length unless either party provides written notice of non-renewal at least [NOTICE_PERIOD_DAYS] days prior to the end of the then-current term. Either party may terminate this Agreement for material breach if such breach is not cured within 30 days of written notice.
6. Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES, OR FOR LOSS OF PROFITS OR DATA, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT.
[COMPANY_NAME]
Signature: ______________________
Name: __________________________
[CUSTOMER_NAME]
Signature: ______________________
Name: __________________________

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Expert Drafting Guide & Clause Commentary

Compiled by Ananya Sen, Advocate. Critical checkpoints before finalizing this document.

1Provision of Service & License Grant▼
Clause Context:

Grants the customer a limited, non-exclusive, non-transferable license to access the platform.

Negotiating Tip:

Explicitly forbid resale, reverse engineering, or scraping of your SaaS application interface.

2Service Level Agreement (SLA)▼
Clause Context:

Guarantees the percentage uptime and details service credits if thresholds are missed.

Negotiating Tip:

Cap service credits at a percentage of the monthly subscription fee (e.g., max 15-20%) to limit financial exposure.

3Limitation of Liability▼
Clause Context:

Restricts total liability for damages, typically capping it at the amount paid by the customer in the past 12 months.

Negotiating Tip:

Never agree to unlimited liability except for specific breaches like confidentiality or gross negligence.

Compliance Watchouts

  • Define clear downtime exclusions in the SLA (e.g., scheduled maintenance, force majeure).
  • Verify that data deletion schedules match local data protection laws.
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Ananya Sen, Advocate (Senior Corporate Legal Advisor)

Ananya Sen is an advocate specializing in Indian corporate law, contract compliance, and start-up advisory. With over 8 years of practice, she has vetted 1,000+ commercial contracts, NDAs, and founder agreements. Former counsel at top-tier legal firms in Bangalore.

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