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A Software as a Service (“SaaS”) agreement sets out the terms on which you will provide your software to users and outlines user obligations. This agreement should also include legal protections and indemnities for your business. A SaaS agreement is different from other software products in that the service is usually accessed online and is a subscription service rather than a one off download. Users may access the software as a service online, for example a cloud sharing service or the service could have both an online component and an associated iPhone or Android app.

The Parties

Your acceptance clause should set out the basics of the agreement, such as your business name and ABN. It should also state that these terms form an agreement between you and the user. You should also outline how the software can be downloaded and accessed, for example do users sign up online or do they download an iPhone or Android app?

Agreement to the terms

It important to include in the agreement that by downloading and using the software in the manner set out above that users are deemed to have agreed to the terms as set out in the agreement. It is impractical to expect users to scroll through and agree to the terms, particularly when using software, as it may be accessed and downloaded from a number of platforms. You should detail whether or not you are going to provide users with login details and how users will be provided ongoing access to the software once they download it.

Variations to the terms

You should include a clause that allows you to make changes to the terms at any time, these changes should be effective once you post the changes online, for example on your blog. You should also email users the updated terms and any changes that may affect them. This gives them the opportunity to cease using the software if they are not happy with the changes in the terms. These changes should also be kept up to date on your website so that the user is agreeing to the most up to date terms available.

Reference your other legal documents

Your terms should also state that they incorporate your Website Terms of Use and Privacy Policy. These policies apply to all visitors to your site, whether or not they use your software and are important to have for any online business. To find out more about these policies click on the links above.


Having a thorough and well-constructed SaaS agreement can save your software development company time and money. This agreement protects you and your business and ensures that users understand their obligations. At LegalVision we have experience with complicated SaaS agreements. We have worked closely with IT and app developers to assist them in growing and protecting their business. We can also draft a variety of other agreements you may need in relation to software development. So if you’re in need of legal advice contact us on 1300 544 755 and speak with one of our experienced IT lawyers today.


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