Terms of Business Template for SaaS Businesses (UK 2025)
Last updated: February 2025
Why SaaS Businesses Need a Terms of Business
SaaS terms of business establish the standard commercial framework governing all customer relationships, including subscription pricing, acceptable use policies, data handling obligations, and service availability commitments. Unlike bespoke contracts negotiated per client, terms of business provide a scalable legal framework that applies to all users, making them essential for SaaS businesses acquiring customers through self-service sign-up. They must comply with the Consumer Rights Act 2015 for B2C customers and address the specific challenges of software delivered as a service.
Key Clauses for SaaS
- Acceptable use policy and prohibited activities
- Subscription pricing, billing cycles, and auto-renewal terms
- Data ownership, portability, and processing obligations
- Service availability, maintenance windows, and support levels
Common Mistakes
- Not distinguishing between B2B and B2C terms where the Consumer Rights Act 2015 gives consumers additional cancellation and refund rights
- Failing to include a clear acceptable use policy, leaving the business without grounds to terminate abusive accounts
Template Sections
- Acceptable use and prohibited activities schedule
- Subscription and billing terms
- Data processing and privacy provisions
FAQ
Do SaaS terms of business need to comply with consumer protection law?
If you sell to individual consumers rather than solely to businesses, yes. The Consumer Rights Act 2015 gives consumers a 14-day cancellation right for digital content, and unfair terms in consumer contracts can be struck out. Maintain separate B2B and B2C terms or include consumer-specific provisions within your standard terms.
Can SaaS terms of business be updated unilaterally?
You can reserve the right to update terms, but must give reasonable notice of material changes and allow customers to terminate if they disagree. For subscription products, best practice is 30 days notice with a clear summary of changes. Continued use after the notice period constitutes acceptance. Ensure this mechanism is clearly stated in the original terms.
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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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