As a SAAS company your SAAS agreement or MSA is more than just a stack of paperwork. It’s the most important document that maintains the framework and structure of your business, governing how your product gets into your customers’ hands and dictating how you get paid. But let’s be honest: most people treat contracts like the terms and conditions for their latest phone update—skimmed at best, blindly signed at worst.
That’s where a SaaS contracts lawyer steps in. They’re not just the people who prevent you from signing away your firstborn in a liability clause—they’re your secret weapon for building, protecting, and future-proofing your SaaS agreements. Here’s how they do it (with only a slight amount of legalese).
1. SAAS Agreements Make Sure You Own What’s Yours
As a founder you’ve poured your blood, sweat and tears into your software. The last thing you want is to lose control of your intellectual property (IP) because of a poorly drafted agreement.
A SaaS contracts lawyer ensures your IP rights are locked down tighter than a bank vault. They’ll draft clear ownership clauses that specify what belongs to you and what your customers are merely licensing. This prevents misunderstandings like a client assuming they can take your code and create their own version of your software or thinking that an upgrade to their system is something they can keep
2. SAAS Agreements Mitigate the Risk of Legal Drama
If SaaS contracts were a TV show, the “limitation of liability”, “indemnification”, and “warranties” clauses would be the part where the dramatic music kicks in. This little section determines who’s responsible—and how much they owe—if something goes wrong.
A SaaS contracts lawyer knows how to limit your liability while still keeping your customers happy. They’ll add provisions that protect you from nightmare scenarios like:
- A data breach that’s technically your customer’s fault, but somehow still your problem.
- A client claiming your software caused their sales to tank because they misused it.
- Uncapped damages clauses that could bankrupt your business faster than you can say “unlimited liability.”
A well drafted SAAS agreement will make sure you’re not held responsible for things you can’t control. Unless you’ve developed sentient software that actively seeks to create chaos—then you might need more than just a lawyer.
3. They Keep the Regulators Happy
Data privacy laws are like that overzealous friend who loves to impose rules at game night—they’re constantly evolving, and breaking them has real consequences.
Depending on where your customers are located, you might need to comply with GDPR (Europe), CPRA formerly the CCPA (California), or any number of other acronyms designed to make you question why you ever started a SaaS business. A SaaS contracts lawyer stays up to date on these regulations and ensures your agreements include the necessary provisions to comply.
For example:
- Are you collecting user data? Your lawyer will include clauses about how it’s stored, processed, and protected .
- Are you transferring data across borders? They’ll make sure your contract has the appropriate safeguards.
Without these compliance measures, you’re essentially waving a red flag at regulators and saying, “Come fine me!”
4. SAAS Agreements Handle the Awkward ‘What-Ifs’
Contracts are all about planning for the worst while hoping for the best. A well drafted SAAS agreement is your first line of defense. Just like driving without insurance, you won’t know that there’s something wrong with your agreement until its too late.
SAAS agreements help you and your customer agree upon things like:
- Uptime or support needs
- Timely payment and termination
- Refunds
A good SaaS contract addresses these scenarios and more. With a good SAAS lawyer, you’ll have crystal-clear terms to ensure that if there is a dispute all parameters have been thought of and detailed. This ensures that when (not if) an issue comes up, you’re prepared to handle them without losing your reputation or bank account.
5. SAAS Agreements Help You Negotiate Like a Pro
Even the best contract is only as good as how well you negotiate your deal. A good SaaS contracts lawyer knows how to strike the perfect balance between protecting your interests and having a smooth contracting process with your clients.
For example, they can:
- Push back on unreasonable demands, like a client asking for unlimited support at no extra cost.
- Suggest compromise clauses that address both parties’ concerns without causing a deal to implode.
- Help you navigate power imbalances, for example, a fortune 100 type client might assume you’ll agree to their terms just because they’re bigger than you.
In negotiations, having a lawyer in your corner isn’t just about flexing legal muscle; it’s about knowing when to stand firm and when to compromise.
6. SAAS Lawyers Future-Proof Your Agreements
The SaaS landscape moves fast. What works for your SAAS agreement or MSA today might not make sense in six months, let alone six years. A SaaS contracts lawyer can draft agreements with scalability in mind, ensuring they remain relevant as your company grows and evolves.
For example:
- If you expand into new markets, will your contract still comply with local laws?
- If you add new features or pricing tiers, are those changes covered in your existing agreements?
- Are you protected if your client suddenly decides to cancel their contract after three years of happily using your service?
By anticipating these issues upfront, your lawyer saves you from scrambling to rewrite contracts every time your business takes a new direction.
Conclusion
A SaaS contracts lawyer isn’t just someone who dots your i’s and crosses your t’s. Hansen Tong is your business’s safety net, insurance policy, and first line of defense. They help ensure your agreements protect your hard work while keeping revenue flowing.
Before you grab a generic SaaS contract template off the internet, ask yourself: Is this agreement strong enough to protect my business? If the answer is “I have no idea,” it’s time to call in Hansen Tong, an experienced SaaS attorney.
Your SaaS business isn’t one size fits all, and neither should your legal solutions. Book a consultation with Hansen Tong today!