SaaS Contract Review: 15 Terms That Could Bite You Later

SaaS contracts are designed to protect the vendor, not you. Behind the simple pricing page lies a Terms of Service document that could lock you into bad deals, expose your data, or make it impossible to leave. Here are 15 terms to watch.

Pricing & Billing Terms

1. Price Increase Clauses: Can they raise prices mid-contract? Look for caps or advance notice requirements.
2. Auto-Renewal: Most SaaS auto-renews. Know the cancellation window—often 30-60 days before renewal.
3. Usage Overages: What happens if you exceed limits? Overage fees can be brutal.
4. Billing Disputes: How long do you have to dispute charges? Often only 30 days.

Data & Security Terms

5. Data Ownership: Who owns the data you put into the system? (Should be you.)
6. Data Portability: Can you export your data? In what format? At what cost?
7. Security Standards: What certifications do they have? (SOC 2, ISO 27001, etc.)
8. Breach Notification: How quickly will they notify you of a security incident?
9. Data Location: Where is your data stored? This matters for compliance.

Service & Support Terms

10. Uptime SLA: 99.9% sounds good, but that's still 8+ hours of downtime per year.
11. SLA Credits: What remedy do you get for downtime? Often just service credits, not refunds.
12. Support Response Times: Is support guaranteed? What are the response windows?

Exit & Termination Terms

13. Early Termination Fees: Can you exit early? At what cost?
14. Data Retention After Cancellation: How long do they keep your data? Can you get it out?
15. Transition Assistance: Will they help you migrate to a new system?

Quick Checklist

Before signing any SaaS contract, confirm:

• ☐ You own your data
• ☐ You can export data in standard formats
• ☐ Price increases require notice
• ☐ Uptime SLA with remedies
• ☐ Clear cancellation process
• ☐ No surprise auto-renewal traps