Reading time: 3 minutes

Your Software as a Service (SaaS) agreement should address your user’s obligations in using the service, as well as any prohibited activities. This will assist you if you would like to terminate the subscription, as well as inform and educate your users about how you expect them to use the software.


Users should warrant that all the information they provide is true, accurate and complete. The user should agree that they are authorised to use the software, and you may include a clause that they must be over the age of 18 years to use your software or have a guardian’s approval if this is applicable. The user should ensure that all usernames and passwords are kept secure and confidential. The user should notify you if there are any breaches of security. This will ensure that if security is breached, the user will notify you, and if you are not notified, you may terminate the agreement and subscription for breach of the terms.

This clause should also set out the user responsibilities to ensure that other related or dependent software is kept up to date and that this is not your responsibility. You should also outline that use of the software is at the user’s own risk and that they are responsible for ensuring that they comply with all laws that relate to them.

It is also important to include a clause which sets out that each user is responsible for the safety and security of their own data and must have their own back up processes in place to ensure that they are able to recover any data that may be lost or damaged in the process of using the software.

Prohibited uses

To protect your software, your SaaS agreement should list all behaviour and activities you wish to prohibit your users from undertaking, such as:

  • Interfering with, changing or altering software;
  • Reengineering the software;
  • Distributing or on-selling the software;
  • Licencing the software;
  • Hacking or altering the integrity of the software; or
  • In any way misusing the software or damaging the software.

This will ensure that you are able to immediately terminate the subscription if you discover that a user is altering your software, accessing or hacking your site.


It is important to include well-drafted user obligations and prohibited use clauses in your SaaS agreement to ensure that users are aware of their responsibilities and that you are protected from inappropriate use of your software by giving yourself rights to terminate a user’s subscription if there is prohibited activity. If you would like LegalVision to draft a SaaS agreement or would like to learn more about user obligations and prohibited use clauses, our team of IT lawyers have extensive experience in this area. We have assisted many software companies to expand and grow their business and protect their software at the same time.

If you’re in need of legal advice, contact us on 1300 544 755 and speak with one of our experienced IT lawyers.


How Franchisors Can Avoid Misleading and Deceptive Conduct

Wednesday 18 May | 11:00 - 11:45am

Ensure your franchise is not accused of misleading and deceptive conduct. Register for our free webinar today.
Register Now

New Kid on the Blockchain: Understanding the Proposed Laws for Crypto, NFT and Blockchain Projects

Wednesday 25 May | 10:00 - 10:45am

If you operate in the crypto space, ensure you understand the Federal Government’s proposed licensing and regulation changes. Register today for our free webinar.
Register Now

How to Expand Your Business Into a Franchise

Thursday 26 May | 11:00 - 11:45am

Drive rapid growth in your business by turning it into a franchise. To learn how, join our free webinar. Register today.
Register Now

Day in Court: What Happens When Your Business Goes to Court

Thursday 2 June | 11:00 - 11:45am

If your business is going to court, then you need to understand the process. Our free webinar will explain.
Register Now

How to Manage a Construction Dispute

Thursday 9 June | 11:00 - 11:45am

Protect your construction firm from disputes. To understand how, join our free webinar.
Register Now

Startup Financing: Venture Debt 101

Thursday 23 June | 11:00 - 11:45am

Learn how venture debt can help take your startup to the next level. Register for our free webinar today.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Winner – Australasian Lawyer
  • 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year - Australasian Law Awards
  • 2019 Most Innovative Firm - Australasian Lawyer