Types of Agreements used in SaaS Industry

While the SaaS industry grows, more often than not, the type of documents to be used gets confusing with the information available online. To make things simpler, we have enumerated the various types of agreements that are used in the SaaS industry and as to when these are actually used. 

Full form End User Licensing Agreement Terms of Service Service Level Agreement Master Service Subscription Agreement
When is it used? When a software program is purchased for the purpose of installation and use on a system such as a laptop/ computer or mobile.
Used in case of a copyrighted software. Generally implies that the software is being "licensed".
Required when there is a need to regulate the use of Services by any of the user.Used when the company is more reliant on third parties for providing the services or when the product developed is relatively new and no specific service level can be guaranteed. It is a generic document that applies universally in terms of the SaaS. When there is a need to establish clear and measurable guidelines for service being provided such as performance metrics, technical support, etc.
This helps in retaining customers in the long run as the service provider provides specific service commitments.
Used for any type of service provided in lieu of subscription fees. With respect to a SaaS used for customers to determine terms of the access granted to the software.
Does it apply to SaaS? Does not apply to SaaS. Yes, applicable in B2C SaaS. And generally credit card users in B2B SaaS. Yes Yes (SaaS Agreement)
What is covered? Granting any user a license to install and use a copyrighted software and/or application. Covers the general rules and regulations for the use of any software which is provided as a service, by any user, such as permitted uses, third party integration, grievance redressal Covers the performance specifications for any type of software which is provided as a service, such as the quality, uptime, etc. specific to oneself or one company. May be standard as well. Covers all aspects regarding the provision of services such as liability, indemnifications, disclaimers, warranties, payment terms, termination, etc.
Typical examples 1. Microsoft computer softwarehttps://www.microsoft.com/en-us/windowsvirtualdesktop/eula
2. Apple applications such iTuneshttps://www.apple.com/legal/internet-services/itunes/dev/stdeula/
3. Grammarly softwarehttps://grammarlysoftware.com/terms-use-eula
1. Zohohttps://www.zoho.com/en-in/terms.html
2. Byjus applicationhttps://dbel-us.byjus.com/legal/terms-of-service.html
3. Chargebeehttps://www.chargebee.com/company/terms/
1. Zohohttps://www.zoho.com/people/help/adminguide/SLA.html
2. Whatfixhttps://support.whatfix.com/docs/service-level-agreement-sla
3. WebEngagehttps://webengage.com/sla/
1. Whatfixchrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://whatfix.com/wp-content/uploads/2021/11/MSA-India-Clean-Template.docx.pdf
2. Digital Hotelierhttps://www.digitalhotelier.com/msa/
3. Salesforce https://www.salesforce.com/content/dam/web/en_us/www/documents/legal/Salesforce_MSA.pdf


The content of this article is for information purpose only and does not constitute advice or a legal opinion and are personal views of the author. It is based upon relevant law and/or facts available at that point of time and prepared with due accuracy & reliability. Readers are requested to check and refer to relevant provisions of statute, latest judicial pronouncements, circulars, clarifications etc before acting on the basis of the above write up. The possibility of other views on the subject matter cannot be ruled out. By the use of the said information, you agree that the Author / Treelife Consulting is not responsible or liable in any manner for the authenticity, accuracy, completeness, errors or any kind of omissions in this piece of information for any action taken thereof.

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