Subscription Agreement

Subscription Agreement

Draft a negotiated subscription agreement for B2B service or SaaS relationships between a provider and subscriber.

Quick Start

1. Collect deal terms from the user using the Deal Summary table below.
2. Draft the agreement following the Agreement Outline.
3. Verify each section against the Clause Checklist.
4. Run Consistency Checks before delivering.

Prerequisites

Gather before drafting:

• Parties: legal names, entity types, jurisdictions, addresses, signatories
• Services: description, access method, deliverables, SLAs, support tiers, usage limits
• Commercial: fees, billing cadence, payment methods, taxes, discounts, price-change policy
• Term: effective date, initial term, renewal mechanics, termination rights
• Data/Security: data types, DPA needs, security standards, sub-processors, retention
• Risk: warranty scope, liability cap, indemnities, IP ownership, governing law/venue

Deal Summary

Fill this table first to confirm scope with the user:

Agreement Outline

1. Parties and Recitals
2. Definitions
3. Subscription Services and Scope
4. Subscriber Responsibilities and Acceptable Use
5. Term, Renewal, and Termination
6. Fees, Billing, Taxes, and Payment
7. Intellectual Property and License
8. Data Rights, Privacy, and Security
9. Confidentiality
10. Warranties and Disclaimers
11. Limitation of Liability
12. Indemnification
13. Compliance and Export/Sanctions
14. Notices
15. Assignment, Changes, Force Majeure, Severability, Entire Agreement
16. Signature Blocks and Execution

Clause Checklist

Verify each section includes:

• Parties/Recitals: entity type, jurisdiction, principal address, agreement purpose
• Scope: services description, limitations, uptime/SLAs, support hours, change management
• Term/Renewal: initial term, auto-renewal notice window, non-renewal method, termination effects
• Fees: amounts, billing cycle, due date, late fees, tax allocation, fee-change mechanism
• IP: provider IP retained; license scope to subscriber; subscriber data ownership
• Data/Privacy: data types, security measures, breach notice timing, retention/deletion, sub-processors
• Warranties: authority/compliance warranty; service warranty (if any); disclaimer of implied warranties
• Liability: cap amount and basis; excluded damages; carve-outs (IP, confidentiality, gross negligence)
• Indemnity: provider covers third-party IP claims; subscriber covers misuse/data issues; procedure and control
• Boilerplate: assignment, amendment, waiver, force majeure, severability, entire agreement, counterparts

Consistency Checks

Run before delivering:

• [ ] Defined terms used consistently and capitalized throughout
• [ ] Fee calculations align with invoicing and payment terms
• [ ] Termination section aligns with data retention and access shutoff
• [ ] Liability cap aligns with indemnity carve-outs and warranty scope
• [ ] Governing law and venue align with notice and dispute sections

Common Pitfalls

• Scope ambiguity: always tie services to a schedule, order form, or SLA attachment
• Implied IP rights: specify license scope, restrictions, and derivative ownership explicitly
• Data term mismatch: align data provisions with actual processing activities; add a DPA if personal data is processed
• Auto-renewal compliance: if consumer-facing, add consumer protections and statutory renewal notices
• Missing cure periods: include clear notice mechanics and cure periods for termination for cause
• E-signature gaps: if electronic signatures are used, ensure compliance with applicable e-signature laws