Förklaring av NDAs – vad du behöver veta (del 2)
Förklaring av NDAs – Vad du behöver veta (del 2)
Efter att ha förklarat grunderna och olika typer av sekretessavtal eller Non-Disclosure Agreements (NDA:s) i den föregående artikeln, kommer vi nu att fokusera på fyra nyckelelement som ingår i NDA:s, d.v.s.: parter, definitioner av ändamål och konfidentiell information samt avtalets giltighetstid.
I del 1 av vår serie “Förklaring av NDA:s” gav vi dig en allmän förklaring om vad NDA:s är och olika typer av NDA som finns (länk till artikeln: https://amstlegal.com/forklaring-av-ndas-vad-du-behover-veta-del-1/). I denna del 2 kommer vi att ta en närmare titt på fyra nyckelelement som är avgörande för NDA:s när det gäller att skydda konfidentiell information:
- Parter
- Definition av ändamål
- Definition av konfidentiell information
- Avtalets giltighetstid
Oavsett om du precis börjar eller har erfarenhet av att utforma, förhandla och skriva under NDA:s (fortsättningsvis benämnt ”sekretessavtal”), kommer den här guiden att hjälpa dig att förstå de viktigaste delarna av detta viktiga verktyg för att hålla känslig information säker i affärstransaktioner.
- Parter
Som med andra avtal är det ofta förbisett och lätt att glömma att lägga till de korrekta parterna i sekretessavtalet. När det bara finns ett företag i gruppen av avtalsparter är det här enkelt, men när du hanterar parter som är delar av större grupper är detta viktigt. Med stora företag som Nvidia, Siemens, Google, Nike osv. är det uppenbart, men när du hanterar mindre grupper, ta dig tid att fundera över vilken enhet i gruppen som faktiskt delar den konfidentiella informationen.
När du är osäker, eller när flera företag i gruppen delar konfidentiell information, kan det vara lämpligt att moder/ holding-företaget ingår i sekretessavtalet. Anledningen till detta är att sekretessavtal vanligtvis innehåller formuleringar som ger mottagarparten rätt att dela konfidentiell information med dotterbolag. Det rekommenderas att också lägga till en väldefinierad definition av “dotterbolag” i sekretessavtalet vilket kommer att utöka rättigheterna och skyldigheterna enligt sekretessavtalet till parternas dotterbolag.
Exempel på specifik partsformulering som måste fyllas i: [Lägg till exakt fullständigt namn på företaget inklusive Ltd., Inc., BV, AB etc.], ett företag registrerat enligt lagarna i [lägg till land/stat], med registrerat kontor vid [lägg till fullständig adress] och företagsregistreringsnummer [lägg till nummer].
- Definition av ändamål
Vanligtvis lägger parter till följande ändamål i sekretessavtal:
- ”diskutera möjligheterna av ett kommersiellt förhållande” eller
- ”utforska potentiella partnerskap eller samarbeten mellan parterna”.
Detta är dock inte det enda ändamål vi stöter på. Andra exempel är ändamål relaterade till: (i) investerare i ditt företag, (ii) forskning och utveckling, (iii) rättsliga förfaranden eller (iv) besök på företag eller fabriker etc.
För att identifiera ändamålet med ditt sekretessavtal, se till att ändamålet överensstämmer med dina affärsmål. Typiskt sett kretsar kärnan i sekretessavtal ändamål kring två nyckelaspekter:
- Utvärdera affärsförhållandets lönsamhet: Bedöma genomförbarheten och fördelarna med ett partnerskap eller samarbete genom att dela konfidentiell information för att fatta informerade beslut.
- Förhandla om förhållandets villkor: Delta i diskussioner och förhandlingar för att definiera villkor, skyldigheter och parametrar med målet att uppnå ömsesidigt gynnsamma avtal genom transparenta utbyten av konfidentiell information.
Varför är det viktigt?
Att tydligt uttrycka ändamålet i ett sekretessavtal är avgörande för att säkerställa överensstämmelse mellan delning av konfidentiell information och affärsmål. Det förebygger missbruk eller oavsiktlig hantering av information, vilket förstärker förtroendet och genomdrivbarhet. Med andra ord är “ändamålet” ditt verktyg för att begränsa hur och när mottagarparten använder och delar din konfidentiella information. Denna tydlighet förbättrar inte bara förståelsen och främjar förtroende mellan de involverade parterna, utan förstärker också avtalets genomförbarhet genom att ge en tydlig referenspunkt för att utvärdera överensstämmelse och hantera eventuella potentiella överträdelser.
- Definition av konfidentiell information
Konfidentiell Information åsyftar känslig information eller affärshemligheter, vilket avslöjats av en part (den offentliggörande parten) till en annan (den mottagande parten) under deras affärsförhållande. Denna information är konfidentiell för att skydda den offentliggörande partens konkurrensläge, finansiella intressen, immateriella rättigheter eller renommé.
Konfidentiell information kan omfatta ett brett spektrum av material, inklusive men inte begränsat till:
- Affärshemligheter
- Affärsplaner och strategier
- Finansiella data och prognoser
- Kundlistor och kontaktinformation
- Produktdesigner och specifikationer
- Immaterialrätt såsom patent, varumärkes- och upphovsrätt
- Marknadsföringsplaner och försäljningsinformation
- Teknologi, mjukvarukod och algoritmer
- Forsknings- och utvecklingsprojekt
- Vilken annan information som helst vilken inte är offentligt tillgänglig och som behandlas som konfidentiell av den offentliggörande parten.
När du ingår ett sekretessavtal som rör mycket känslig information, se till att du lägger till all relevant konfidentiell information som vanligtvis inte ingår i definitionen av Konfidentiell Information.
Specificera vilken konfidentiell information som ska skyddas.
Definitionen av konfidentiell information i ett sekretessavtal är avgörande och bör uppnå en balans mellan specificitet och allmänhet. Den måste vara tillräckligt specifik för att säkerställa skyddet av avsedd konfidentiell information, men allmän nog att omfatta oväntad men relaterad information.
Till exempel kan parter välja snäva definitioner för att skydda endast specificerad information, eller bredare definitioner för att omfatta all information som utbyts under deras affärsförhållande. I vissa fall kan det vara nödvändigt att inkludera sekundär information, som produkter eller tjänster som härstammar från konfidentiellt material, inom definitionen av konfidentiell information.
Idealiskt bör formuleringar som, innebär att all skriftlig eller muntlig information som identifieras som konfidentiell eller som rimligen bör betraktas som konfidentiell, läggas till.
Ett välskrivet sekretessavtal bör också tydligt ange vad konfidentiell information förstås vara och hur den konfidentiella informationen kommuniceras. Enligt vår uppfattning bör ett NDA inkludera formuleringar liknande följande: “Konfidentiell information” avser all information som inte är offentlig och all skriftlig, visuell eller muntlig information som avslöjas av eller på uppdrag av en part eller dess dotterbolag (“offentliggörande part“) till den andra parten (“mottagande part“) och identifieras som konfidentiell eller som rimligen bör betraktas som konfidentiell, inklusive men inte begränsat till information om deras affärsverksamhet, affärshemligheter, …
- Avtalstid och icke-offentliggörandeperiod
Sekretessavtal har vanligtvis en specificerad tidsperiod efter vilken de upphör att gälla. Dessutom måste den avslöjade informationen förbli konfidentiell därefter. Det finns ingen standard eller allmänt accepterad gräns, men längden bör vara rimlig med hänsyn till faktorer som den konfidentiella informationens livslängd och branschspecifika aspekter.
Vanligtvis enas parter om en 2- eller 3-årsperiod, men för immateriella rättigheter och forsknings- och utvecklingsprojekt är tidsperioden för konfidentialitet vanligtvis längre.
Efter upphörandet kan den offentliggörande parten kräva att den mottagande parten upprätthåller konfidentialitetsförpliktelser under ytterligare år (vanligtvis även 2–3 år). När parterna ingår ett specifikt avtal som gäller ändamålet i sekretessavtalet, bör konfidentialitetsklausulerna i det specifika avtalet ersätta formuleringen i sekretessavtalet. Även om detta inte är vanligt, är det möjligt att lägga till sådana formuleringar specifikt i sekretessavtalet.
How to Close Contracts Successfully Before Holiday Periods
As we approach the end of Q2, it’s essential for Sales, Procurement, and Legal teams to focus on closing commercial contracts. Imagine this scenario: you’re in the final days of Q2 – almost holidays, and a critical contract worth millions hangs in the balance. The pressure is immense, and every second counts.
To help your teams manage the hectic time before summer holidays effectively, we have laid the groundwork for smoother and better legal processes. Next to great preparation, during the last week we emphasize the importance of maintaining clear communication to ensure your contracts are signed before the end of Q2.
Clear Communication: The Key to Closing Contracts
Transparent and open communication with your customers and internal teams is crucial. Confirm the timing and process needs, address any concerns, and emphasize the urgency of reaching a final agreement. Here’s how you can achieve this:
Actionable Steps:
- Collaborate Closely with Internal Teams: Streamline the contract process by working together. Set daily meetings with clear goals to monitor progress.
- Open and Transparent Communication: Confirm timing and process needs with all stakeholders. Address any concerns promptly and reiterate the urgency of closing the deal.
- Proactive Risk Management: If a deal seems to be slipping into the next quarter, inform both internal and external teams immediately to manage expectations and risks.
Effective communication ensures that everyone is on the same page and working towards a common goal, reducing the chances of misunderstandings and delays. Here are three additional tips to complement clear communication and help you close your Q2 contracts successfully:
1. Prioritize Strategically
Focus on high-volume and strategic deals that are close to closure and must be finalized by the end of the month. Assess each contract’s likelihood of closing within the next week. If a deal seems unlikely to close by the deadline, consider pausing it and picking it up again in Q3.
Key Questions to Ask:
- Is this contract closing next week?
- Should we pause this deal and resume in Q3?
- Are we working on the right deals based on the company’s and Sales department’s top priorities?
By prioritizing strategically, you can ensure that your efforts are directed towards deals that are most critical to your organization’s success.
2. Encourage Team Collaboration
Cross-functional teamwork is essential to overcome last-minute hurdles. Management, sales, legal, and procurement teams must work together seamlessly to resolve any issues that arise.
Best Practices:
- Avoid working solo on complicated deals.
- Collaborate with both internal and external teams for maximum efficiency and alignment.
- Leverage the strengths of each team member to tackle obstacles and escalate matters when necessary.
By promoting collaboration, you can address challenges more effectively and ensure that all team members are aligned towards the goal of closing deals.
3. Manage Deadlines Meticulously
Keep a close eye on deadlines and review the full list of contracts to be signed, along with their requirements (timing, documents, approvals, etc.). Plan ahead to leave room for any errors.
Proactive Measures:
- Monitor critical dates and ensure all necessary signatures and documents are obtained in time.
- Plan a few days ahead to mitigate the risk of missing important deadlines.
- Keep track of all contract requirements to avoid costly mistakes.
Deadline management is crucial to ensure that no critical steps are missed in the final week of the quarter, enabling you to close deals successfully.
Conclusion
Closing deals in the final week of Q2 requires focus, prioritization, clear communication, and teamwork. By following these tips, you can navigate this busy period more effectively and finish the quarter strong.
If you need support managing your contract negotiations, please contact us at AMST Legal.
5 Tips How to Get Contracts Signed Faster
Introduction – Why Does It Take So Long To Get Contracts Signed?
The steps from negotiating a contract to signing takes time because of compromises that need to be reached between parties. In B2B negotiations, this is usually also caused by processes that are in place to negotiate and handle contracts. This is why it is so important to implement new processes and make better templates to sign contracts faster in your company.
5 Tips to Get Contracts Signed Faster
After 20 years of experience in this field, I have noticed that the same 5 things will help speed up the contract process from the negotiation stage to the signing stage. Working with many of the Big Tech companies like NVIDIA, Microsoft, Tesla, Google etc., I have learned that they all use the same approach.
It takes a lot of effort to improve contract processes, but we have summarized it in a list of five rules to follow. We have implemented this approach in many companies, and it always works. These steps will make contract processes more enjoyable and efficient.
Hereby our five recommended steps to take to get your contracts signed at least 50 % faster.
1. Work towards the 80/20 Rule of Contract Negotiation
The first rule is the 80/20 Rule which is a guideline for how legal departments should allocate their time and resources when dealing with contracts. Simply said, it means that you train your team to ensure that 80% of your contracts follows the standard template, meaning that only 20% of your contracts is able to be negotiated. A break-down of the best way to set up this 80/20 Rule is as follows:
80 % of contracts: No legal involvement
Your company has ensured that your standard templates contracts are straightforward and standardized enough that they can be handled without any input from the legal team. This includes routine agreements or contracts that follow a well-established template. The idea is to empower the commercial team and relieve legal resources by allowing non-legal staff to manage these contracts.
10 % of contracts: Light Touch of Legal Involvement in the background
These contracts require some legal oversight, but not extensive involvement. The legal team might review the documents briefly or provide occasional guidance. Legal will be the advisor in the background, ensuring that there are no major issues without being heavily involved in the drafting or negotiation process.
Remaining 10 % of contracts: Legal is actively involved
These are the most complex or high-risk contracts that demand significant input from the legal team. Legal professionals will be actively involved in drafting, negotiating, and finalizing these agreements. This ensures that potential legal risks are thoroughly assessed and mitigated.
In essence, the 80/20 Rule in this context is about optimizing the use of legal resources to make the contract management process faster and more efficient. By categorizing contracts based on the required level of legal involvement, organizations can streamline operations, reduce bottlenecks, and ensure that critical legal oversight is available where it is most needed.
2. Create Easy-to-Use Templates
The second rule concerns the importance of using simple, easily usable contract templates. To be persistent with the first rule of dividing up the contractual work between legal and non-legal departments, this rule is crucial, as you focus on contract standards that are straightforward, market practice and user-friendly. This means less comments by external legal departments and it allows non-legal staff to handle contracts with minimal confusion and delays.
To ensure that your contract templates stay simple in daily use, please see the following checklist of contract templates that might need attention:
- Traditional contracts: If you’re still using traditional contracts, consider shifting to an Order Form or similar that references to a General Terms & Conditions, a Master Service Agreement (MSA), or a standard Customer Agreement.
- Separate documents for each country: Using separate contract templates for different countries can complicate the process. That does not have to be the case though, as a template that can be universally applied with some minor adjustments works just as well. That can reduce the complexity when dealing with contracts in more countries.
- Overly Complicated Templates covering all potential risks: If every possible risk is addressed, the template can be too complicated and difficult to use. If a more standardized template that cover the most common and significant risks is used, it is more user-friendly.
If your current templates fall into any of the above categories, you might want to consider revising them to make them simpler and more efficient as that will save time and reduce misunderstandings. That leads to a more efficient contract management process which will save you so much time.
Another step apart from simplifying your templates that can make the process more efficient is to create playbooks. The aim of the Playbooks is to explain and provide alternatives to common clauses. Using Standard Questionnaires is another way of making the process easier. This can reduce the need for lengthy explanations and back-and-forth communications.
By creating easy-to-use contract templates and accompanying tools like playbooks and standard questionnaires, you can significantly reduce the time and effort needed to handle contracts. This approach supports the division of contractual work as outlined in the first rule, making the entire process more efficient and less reliant on legal intervention for most contracts.
3. Delegate Most Legal Work to Commercial Teams
This step stresses the importance of delegating the contract management and negotiation of contracts to the contract owners, i.e. usually the Sales and/or Procurement teams. This delegation aims to streamline processes and empower non-legal departments to handle contracts effectively. This will work especially well if they are provided with great templates (including where possible playbooks)
By shifting the responsibility of contract management and negotiation to the contract owners, they can handle the bulk of the contractual work independently. As the Sales and Procurement teams usually are responsible for initiating, negotiating and managing contracts related to their function, this empowerment is only natural. As Sales and Procurement teams are closer to the commercial aspects of the contracts, they can negotiate more effectively and tailor the terms to meet business need.
This reduces reliance on the legal department solely for every contract-related task and speeds up the process as those departments usually are more flexible than legal.
This delegation streamlines the contract process, optimizes resource use, and ensures faster and more efficient contract handling.
4. Open Communication between Legal and Commercial Teams
The next tip emphasizes the importance of involving relevant teams in the development and implementation of new contract templates and standards. Additionally, teams should meet regularly to keep communicate opportunities to improve the templates and the processes.
When implementing new contract templates, the top-down approach (meaning that teams are forced to use new templates or new ways of working) does not work.
This approach often leads to resistance from the other teams. Instead, when issuing new contract templates or standards, a pro-tip is to actually involve the other teams of the organization and teach them how to use them in their day-to-day work. Doing this might seem inefficient, but involving the teams that will use the new templates and standards is paramount to create practical, user-friendly templates..
Team Involvement
There are many positive ways to involve the team in the development of templates, but most importantly:
- When non-legal team members are involved in the development of the templates, they will be more likely to advocate the correct use of the templates,
- Ask non-legal colleagues if the templates are easy to understand, and change where necessary, which will increase and it is more likely that departments will use the templates,
- If Sales and/or Procurement teams have the opportunity to provide input and feedback, the templates will remain up to date,
- Regular training to inform the teams about the development of templates and asking for input is the key to success.
A top-down approach to impose new contract templates and standards does not work.
As we have noticed in practice and as shown in research, providing training to e.g. Sales and Procurement Teams, while continuously collecting and incorporating feedback, leads to higher adoption rates, improved compliance and more efficient contract management.
This collaborative approach fosters a sense of ownership and engagement among all stakeholders of the company.
5. Create Legal Landing Page and Implement Legal Tech
The last tip to improve and ensure efficiency in contract management and negotiation is (i) to create a centralized repository where all standards are located and (ii) implement legal tech in your organization.
Legal Landing Page
Start with the creation of a legal landing page, which is a centralized repository where all legal templates, guidelines and resources are easily accessible. This helps streamline the process of making deals and ensures that everyone is using the correct and most recent templates. Additionally, it reduces delays and confusion in the organization.
“Where can I find that template again?”
Some examples of essential templates to include in the legal landing page include the following documents:
- NDA
- Order Form
- General Terms and Conditions (T&C) / Master Services Agreement (MSA) / Terms of Use Agreement (ToU)
- Customer Agreement
- Data Privacy Agreement
- Privacy Policy
- Partner Agreement
- Amendment/Variation Agreement
The best approach is to include the most used contract templates in the legal landing page for it to be used the most efficient.
Legal Technology
Once you have implemented the Legal Landing Page and take other steps to improve the legal processes of the company, it is time to implement legal tech in the organization. If you have the budget, invest in a contract management system to centralize, track, and manage all templates and all specific contracts. This improves efficiency, compliance, and accessibility of contract information.
Creating a legal landing page and implementing legal tech can significantly enhance the efficiency and effectiveness of a smaller organization’s legal processes. By providing easy access to essential templates and automating routine tasks, employees can handle many legal functions independently, ensuring consistency, compliance, and scalability. This approach not only empowers teams but also frees up the legal department to focus on more complex and high-value tasks.
Reach out to us at AMST Legal at rreggers@amstlegal.com or call on +31 6 5060 8964 for tips to improve your legal processes or negotiate your contracts.
How to Finish the Quarter Strong in Contract Negotiations – 6 Tips
Introduction
Is there a way to prepare for contract negotiation peaks, like the end of the quarter? Especially before the end of Q2 (Summer holidays and Q4 (Christmas holidays) commercial and legal teams see a spike in contracts that need to be signed. Also see this Harvard Business article on the end of quarter sales rush and how to improve your sales processes.
As a lawyer and in-house legal counsel since 2004, I’ve witnessed firsthand the challenges faced as quarter-end approaches. Negotiation deadlines, approvals bottleneck and orderly workflows turn into chaos and team members are stressed. What if you could approach this challenging period with strategic foresight and unmatched efficiency? Let’s explore how proactive planning can transform your end-of-quarter chaos into a symphony of streamlined processes in the Article ‘How to Finish the Quarter Strong in Contract Negotiations – 6 Tips’.
Harnessing Proactive Steps to Master the Quarter-End Crunch
The key to conquering the quarter-end isn’t reactive measures but proactive planning. With Q2 upon us, now is the perfect time to optimize your legal department’s operations and prevent the usual end-of-quarter negotiation bottlenecks.
Setting the Stage for Efficiency
While Q2 is often underestimated in terms of urgency, it’s an ideal period for reflection and goal setting. Take this time to evaluate your legal department’s past achievements and outline ambitious targets for the weeks ahead. Actions taken now will not only streamline current processes but will also pave the way for a smoother Q3 and beyond.
Preparation in the previous months is instrumental in achieving this efficiency. Working on templates and improving meeting structures between legal and all relevant teams sets a solid foundation for success.
Example: One of my clients, a mid-sized tech company, struggled with the chaos of quarter-end contract negotiations. By introducing standardized templates for recurring agreements and setting up regular bi-weekly meetings between the legal team and sales departments, they managed to streamline their processes significantly. Within two quarters, the time spent on each contract was reduced by 30%, and the number of last-minute urgent requests dropped dramatically.
Here are some actionable tips to set your team up for success:
Templates Only
Avoid new custom-made contracts. Use standardized templates to save time and reduce errors.
Focus Only on Q2 Deals
Prioritize deals closing this quarter. Concentrate your efforts on what can be completed by the end of Q2 to avoid last-minute rushes.
Write Down Lessons Learned
Document improvements for future reference. Reflect on past challenges and successes to refine your processes continuously.
The Power of Proactive Communication
With only a few weeks left in Q2, initiating a targeted communication strategy is crucial. Here’s a recommended approach:
Proactive Communication
Initiate clear and targeted communication early, also with outside counsel and customers. Open lines of communication ensure everyone is on the same page and can address potential issues promptly.
Set Clear Expectations
Define focus areas and require management approval for exceptions. Clearly articulate priorities to your team and stakeholders to ensure alignment and minimize distractions.
Example
At a large financial services firm I worked with, the legal team started sending out a “Quarter-End Preparation Bulletin” four weeks before the end of each quarter. This bulletin included a clear outline of priorities, deadlines, and key contacts for any urgent matters. By setting these expectations early, the team saw a 50% reduction in last-minute contract sign-offs and a smoother approval process.
Recommended Approach:
- Targeted Communication: Start with drafting a clear, concise email to your Sales, Partner, and Procurement teams.
- Clear Expectations: Outline that your focus for the upcoming two weeks will revolve around ongoing contracts, genuinely urgent matters, and documents needing signatures by quarter-end.
- Management Approval: Make it known that any deviations from these priorities will require direct approval from senior management.
Building Trust Through Consistency
Implementing this proactive communication strategy may initially meet some resistance. However, consistency will foster trust and acceptance over time, leading to earlier and more efficient interactions with Sales, Procurement, and Partnership teams.
Consistency Builds Trust
Regular, predictable processes lead to better outcomes. Establishing a routine will help your team and stakeholders know what to expect and plan accordingly.
Consistency is key. When your team and stakeholders know what to expect, it builds trust and reliability. This consistency ensures that everyone is prepared and can plan their work around these predictable processes.
Proven Success and Long-Term Benefits
Adopting this proactive stance can yield significant improvements within just a few quarters. By optimizing the use of your team’s resources and ensuring focus on critical, time-sensitive tasks, you can achieve better results and reduce stress.
Example
A medical devices company we advised implemented these strategies and saw notable improvements within 2 to 3 quarters. The legal team’s productivity increased by 40%, and they reported a significant reduction in stress levels and overtime hours during quarter-end.
Next Steps for Implementation
Before you send out that crucial email, ensure your team is aligned during your regular meetings and gain the necessary buy-in from key stakeholders to support this new strategy. Make sure everyone understands the benefits and is on board with the changes.
Conclusion
By embracing proactive strategies before the peak of Q2, you can effectively reduce negotiation hurdles and enhance your legal team’s productivity throughout the year. This approach, honed through my extensive experience in various high-level legal roles, can transform your quarter-end processes into efficient, well-oiled operations
Struggling with SaaS Vendor Contracts? See our list with the 17 Most Common Documents
There are many different types of contracts and documents commonly used in SaaS business arrangements. In this post, we will provide you with a comprehensive list of top-tier Software as a Service (SaaS) and related contract and document resources.
To start with, what do these terms mean?
“SaaS contracts and documents” refers to the legal agreements and documentation involved in Software as a Service (SaaS) products and services. These documents outline the terms and conditions of service provision, usage rights, data protection, liability, payment terms, and other crucial aspects of the SaaS relationship between the service provider (vendor) and the customer.
“SaaS is a subscription-based software that works through the cloud, meaning you do not need to install or maintain it on your computer. You do not need to install or maintain software; you only need Internet access to use SaaS products. Examples: Google, Microsoft 365, Salesforce, Adobe, Zoom etc.
When using SaaS, there is a need to have a binding legal contract which sets out the terms and conditions of the software subscription and regulates the relations between a software provider/vendor and a customer who is subscribing to use the Software online. In practice, you can see different names of SaaS Agreements, such as Master Agreement, Subscription Agreement, End-user License Agreement (EULA), and (SaaS) License Agreement, etc. So, there are various types of contracts or documents you need to be familiar with when you manage SaaS contracts.
Some common SaaS contracts and documents include:
- General Terms & Conditions/Terms & Conditions (GT&C/T&C), refer to the legal agreement that sets out the rules, policies, and guidelines governing the use of services, products, or platforms. These terms establish the foundational relationship between a provider, seller, or service operator and its clients, customers, or users. They outline rights, responsibilities, limitations, and obligations to ensure clarity and fairness in transactions or interactions.
- Master Service Agreement/Master Ordering Agreement (MSA/MOA) is a comprehensive contract that lays out the fundamental terms and conditions governing future transactions, projects, or agreements between parties. It serves as a foundational framework for subsequent detailed agreements, orders, or projects, providing a consistent set of terms and conditions that apply across multiple transactions or projects. The MSA/MOA outlines the overarching rights, responsibilities, obligations, and terms of engagement between the parties involved, facilitating efficiency and clarity in business dealings.
- Terms of Use (ToU), also referred to as Terms of Service (ToS), is a legal agreement that specifies the rules and guidelines users must adhere to when using a website or service. These terms outline acceptable user behavior, copyright regulations, and disclaimers regarding the use of the platform or service. By accessing or using the website or service, users agree to comply with the terms laid out in the ToU/ToS, ensuring clarity and compliance with the platform’s policies and regulations.
- End-User License Agreement (EULA) is a license agreement that sets forth the terms and conditions under which a user is granted the right to use a software application. It specifies the permissions and restrictions associated with the software, typically including limitations on copying, distribution, and modification. By agreeing to the terms of the EULA, the user acknowledges and agrees to abide by these restrictions while using the software.
- Service Level Agreement (SLA) is a contract that establishes the expected standards of service to be provided by a service provider/vendor to its clients or customers. It outlines measurable metrics for service levels, such as uptime, response times, and performance benchmarks, to ensure transparency and accountability in service delivery. Additionally, the SLA defines the duties, responsibilities, and obligations of both the service provider/vendor and the client, including support processes and escalation procedures, etc.
- Data Processing Agreement (DPA) is an agreement that governs how a data processor handles personal data on behalf of the data controller, ensuring adherence to data protection laws. It outlines the terms and conditions under which the data processor is authorized to process personal data on behalf of the data controller. The DPA ensures compliance with data protection laws, such as the General Data Protection Regulation (GDPR), by specifying the responsibilities, obligations, and security measures that the data processor must adhere to when processing personal data.
- Non-Disclosure Agreement (NDA) is a legal contract that creates a confidential relationship between parties involved in a business transaction, collaboration, or exchange of sensitive information. Its primary purpose is to safeguard confidential or proprietary information, including trade secrets, technical know-how, or other valuable data, from unauthorized disclosure or use by third parties. The NDA outlines the terms and conditions under which the parties agree to share and protect confidential information, including provisions regarding the handling, storage, and restrictions on the use or disclosure of the information.
- Order Form (OF) is a document used in commercial transactions to specify the products or services to be purchased by a buyer from a seller. It serves as a formal agreement between the parties, detailing the quantities, prices, and terms that have been mutually agreed upon. The Order Form typically includes information such as product descriptions, quantities, unit prices, total costs, payment terms, delivery details, and any applicable terms and conditions.
- Purchase Order (PO) is an official offer issued by a buyer to a seller, indicating the types, quantities, and agreed prices for products or services intended to be purchased. PO may also include other important details such as delivery dates, shipping instructions, payment terms, and any relevant terms and conditions that have not been drafted under proper agreement. Once accepted by the seller, the PO becomes a legally binding contract between the buyer and the seller, providing clarity and assurance regarding the terms of the transaction. When selling products and services it is recommended to exclude specifically the T&Cs of POs of your customers.
- Financial Services Addendum (FSA) is a supplementary document which addresses specific regulatory and compliance obligations that are pertinent to financial institutions or organizations operating within this sector. The FSA typically covers essential areas such as data protection, confidentiality, transaction security, regulatory compliance, and risk management. It may outline additional terms, requirements, and safeguards related to the handling, processing, and storage of financial data and sensitive customer information.
- Financial, Social and Governance (ESG) encompasses a framework for evaluating a company’s commitments to sustainable, ethical, and responsible business practices across environmental, social, and governance aspects. It provides a comprehensive view of how a company operates and its impact on various stakeholders, including the environment, society, employees, investors, and communities.
- Code of Conduct Agreement (CoC) serves as a foundational document that outlines the expected standards of behavior, ethics, and professional conduct for all individuals associated with an organization, including employees, contractors, and partners.
- Privacy Policy is a critical document that provides detailed insights into the strategies employed by an entity to acquire, utilize, disclose, and oversee customer or client data. It outlines the measures taken to safeguard the privacy of individuals and ensure compliance with legal mandates and regulations governing data protection and privacy. A comprehensive Privacy Policy typically covers various aspects, including the types of information collected, the purposes for which it is collected, how it is used and shared, data retention practices, security measures implemented to protect data from unauthorized access or disclosure, and the rights of individuals regarding their personal information.
- Request for Information (RFI) is a formal process organizations use to gather preliminary details from potential suppliers or vendors before requesting more detailed proposals or quotations. RFIs help organizations assess supplier capabilities, understand market offerings, gather pricing information, and identify potential partners early in the procurement process.
- Request for Quotation (RFQ) is a formal invitation extended to suppliers or vendors, submitting bids for specific products or services. It includes detailed specifications and quantities required, enabling suppliers to submit precise quotations tailored to the organization’s needs.
- Request for Proposal (RFP) is a formal solicitation document issued by an organization to potential suppliers or vendors, inviting them to submit proposals for providing a desired solution or service. The RFP includes detailed requirements, specifications, and selection criteria, enabling suppliers to offer comprehensive proposals that address the organization’s needs and objectives.
- Business Associate Agreement (BAA) is a contractual document that outlines the practices and safeguards a business associate must adhere to when handling protected health information (PHI) on behalf of a covered entity, as mandated by the Health Insurance Portability and Accountability Act (HIPAA). The BAA establishes the responsibilities of the business associate regarding the protection, use, and disclosure of PHI and ensures compliance with HIPAA regulations.
If you need more information about SaaS Agreements and need help drafting a SaaS contract for your organization or reviewing a SaaS contract, please contact us on rreggers@amstlegal.com