Sales Contract Template for SaaS Businesses (UK 2025)
Last updated: February 2025
Why SaaS Businesses Need a Sales Contract
SaaS sales contracts govern enterprise or high-value subscription agreements that go beyond standard terms of service, typically for deals involving custom pricing, dedicated infrastructure, or negotiated SLAs. Unlike self-service sign-ups, these contracts are individually negotiated and must address bespoke commercial terms, data residency requirements, security commitments, and procurement compliance for larger organisations. They bridge the gap between the vendor's standard terms and the buyer's procurement requirements.
Key Clauses for SaaS
- Custom pricing, payment terms, and volume discounts
- Data residency and security commitments specific to the customer
- Bespoke SLA with enhanced uptime and support guarantees
- Procurement compliance including audit rights and vendor management
Common Mistakes
- Not including adequate data security commitments for enterprise customers who may face their own regulatory requirements
- Failing to address the customer's audit rights and vendor management requirements expected in enterprise procurement
Template Sections
- Custom pricing and commercial terms
- Data security and residency commitments
- Enhanced SLA and support provisions
FAQ
When does a SaaS business need a sales contract instead of standard terms?
When dealing with enterprise customers whose procurement teams negotiate individual terms, when offering custom pricing or dedicated infrastructure, when the customer has specific data residency or security requirements, or when the annual contract value justifies individual negotiation. Typically this applies to contracts above five to ten thousand pounds annually.
What data security commitments should a SaaS sales contract include?
Enterprise customers expect specific security commitments including encryption standards for data at rest and in transit, access control mechanisms, vulnerability scanning and penetration testing frequency, incident response procedures and notification timelines, and compliance with relevant standards such as ISO 27001 or SOC 2. Include these as a security schedule that can be updated independently.
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Get Started FreeThis is guidance for UK businesses, not legal advice. Templates are illustrative. Consult a solicitor for complex matters.
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