Term of the SaaS

Continuing my series on #SaaS #contracts, t one common way of defining the term of a SaaS MSA – the term starts when the first order starts and ends when all orders under the MSA have expired or terminated.

Some things to consider when determining start and end dates for the term of the MSA.

– Will any ancillary work be done (or is currently in progress) before an actual order is signed (for example advising on design and architecture)? Will the parties be sharing any confidential information ? The MSA term should be flexible enough to cover such periods.

– Are there any services (eg transition services) that will take place after all orders are terminated? Is there a grace period after termination of orders for the supplier to destroy or return all sensitive information? The end date of the MSA should take these situations into account.

– You may want to revisit MSAs with key suppliers on a regular basis to refresh the terms with changes in the law and changes in your policies. As a supplier, you may want the option to renegotiate a not-so-favorable MSA in the future. In such cases, it is best to have the MSA run for a fixed period so the parties have an option to renegotiate if necessary.

Have you seen any other different arrangements for the term of your SaaS MSAs?

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