SaaS Agreement Checklist: 10 Things You Need to Know

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Think your SaaS contract is locked in just because the legal team signed off? You might want to double-check that.

According to Gartner, SaaS spending is growing at nearly 19% year over year but many teams still don’t know which terms can be negotiated, or how to avoid hidden renewal risks and usage-based charges that quietly inflate spend.

This SaaS agreement checklist breaks down 10 contract terms worth reviewing before signing or renewing your next SaaS deal. From user access limits to data ownership, we’re covering what matters and why it can cost you if ignored.

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TL;DR 

• SaaS contracts aren’t just legal paperwork; they define usage rights, renewal timelines, penalties, data ownership, and service expectations. Missed terms can quietly inflate your spend.
  
• Most buyers skip reading the fine print. Yet, 91% of Americans don’t read agreements, and that’s a risk when handing over sensitive data or relying on uptime guarantees.
  
• This checklist covers 10 key areas, including access limits, SLAs, renewal clauses, termination policies, and billing metrics, so you can review and renegotiate smarter.
  
• Tools like CloudEagle can automate it all from extracting contract metadata to managing renewals, usage tracking, and vendor negotiations, giving your team full visibility and control.

‍What is a SaaS agreement?

A SaaS agreement is a legally binding contract that protects the interests of both the SaaS vendor and the buyer. It defines a legal relationship between both parties, and mostly legal teams are involved while signing SaaS agreements.

It drafts terms and conditions based on the SaaS services’ delivery and usage. It includes a privacy policy, usage requirements, user restrictions, a termination policy, and a geographical usage policy. 

A SaaS license agreement also clarifies important aspects like intellectual property rights, confidentiality, limitation of liability, and other conditions that could impact your business directly or indirectly.

You’re expected to acknowledge and accept the terms, sign the contract, and give your consent before using the product. But here's the catch: most people skip the reading part.

Buyers don’t read SaaS license agreements

According to Deloitte, 91% of Americans never read the agreements they sign.

That’s a problem, especially when you’re handing over sensitive data and letting a vendor sit inside your workflows. Liability clauses, SLAs, and usage restrictions aren’t just formalities. They define what happens if things go wrong.

This software might live in your stack for years. It might touch customer data, internal IP, and revenue-driving workflows. Miss the fine print, and you're exposing the business to avoidable risk and a lot of cleaning up later.

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‍Why do you need a SaaS agreement as a buyer?

‍A SaaS agreement serves as a common ground for software providers and customers. It works as a legal shield from the software providers’ perspective that details all obligations for the end users.

The SaaS vendor can even hold the customers accountable in cases of service misuse or violation of agreement terms, as per the applicable law.

Users need to understand the obligations and terms of usage in a SaaS agreement. The agreement for customers generally lists service-level guarantees, licensing requirements, terms of use and permit, how your data is stored or used, and certain restrictions.

Some of the crucial aspects you need to check in a SaaS agreement are:

• How does the vendor define the data collected and stored on their servers?
• How does the provider collect the data?
• The type of data collected and the duration for which data is stored
• Will the company erase the data once you stop using the services?
• Who has ownership of the data?
• Is there an indemnification clause included in the SaaS contract?
• What is the penalty for breaching the contract?
• Who will be held accountable in the event of a data breach?

You need to find the answer to these questions in your SaaS contract agreement. A SaaS agreement helps buyers know about data management, liability, and SaaS usage terms.

Reading the cloud service agreement conditions before accepting them can be daunting; include a legal team during the contract and follow this SaaS contract agreement checklist to make the process easier.

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The 10-Point SaaS Agreement Checklist

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1. Start and End Dates

The start date is when the SaaS agreement officially becomes active. From the agreement start date, the SaaS application becomes available for use by individuals or companies that purchased it.

The SaaS agreement’s end date refers to the renewal or termination of the subscription. To ensure a smooth user experience and prevent application downtime, it's crucial to stay vigilant about tracking start and end dates.

Tracking the end date of the SaaS subscription agreement is essential for the sales teams to negotiate the contract upgrade or renewal terms.

Sales reps can help companies get the best value from a SaaS subscription. Planning the renewal negotiation strategy ahead of the curve is always profitable for companies, and this is possible only if the contract dates are tracked effectively.

Also check:

• If the contract is set to auto-renew
• Whether there are penalties or fees for missing the renewal window

This small detail can lead to big savings and avoid paying for unused software in 2025.

2. Access Rights and Users

The next vital aspect of a SaaS agreement checklist is access rights and users. Most agreements cap the number of users accessing the software, and this limit varies depending on the pricing plan.

Most basic SaaS agreements come with a single-user license, which means multiple users can’t access the platform under the same contract. While buying the subscription, you should know this parameter, it can help you avoid unnecessary costs.

If you have more team members:

• Consider upgrading to an enterprise plan
• Ask the provider to customize the agreement based on your usage
• You might be eligible for a volume discount

You also need to check:

• Penalties for exceeding the user limit
• Data entitlements tied to the plan
• Whether violating usage policies could result in service suspension or contract termination

Some vendors enforce their terms strictly, so it’s important to understand what your plan includes and what it doesn’t.

3. Customer Support and Services

In the SaaS agreement checklist, customer support plays a critical role in delivering a smooth user experience, especially during onboarding or unplanned downtime.

Before you choose a SaaS application, read the customer support and service clauses carefully. Some vendors offer phone support, others provide 24×7 email support, and a few include both.

Here’s what you should check:

• How support is delivered (email, phone, live chat)
• Whether support is available during your working hours
• Average response time, especially if you're in a different time zone

Also, look for onboarding and technical assistance. If it's not included by default, request the vendor to add it either as part of the agreement or within the pricing structure.

Support quality isn’t just a nice-to-have. It directly affects your team’s ability to use the product effectively.

4. Data ownership and usage

Data ownership comes with legal weight and should never be overlooked when subscribing to a new SaaS tool. This point of the SaaS agreement checklist should clearly state whether a SaaS agreement includes:

• How the vendor collects and stores data
• What data ownership looks like during and after the contract period

The agreement should confirm whether the uploaded or generated data belongs to you (the customer), or if the vendor retains ownership. Some vendors may claim ownership but allow retrieval after termination – read this part carefully.

This section is often a gray area, where vendors include surface-level language but bury important clauses deeper in the document. Don’t skip the details.

Data Usage

If the vendor retains any rights to your data, check how they plan to use it. In some cases, they might:

• Use customer data to improve their services
• Feed usage data into AI models or analytics

You can restrict this if it involves sensitive information like:

• Patents
• Source code
• Trade secrets
• Customer or financial data

In the EU, regulations like GDPR offer some protection. But in other regions, vendors may collect and use broader datasets unless you explicitly limit them.

To stay protected in 2025, make sure the data usage clause is clearly defined and aligned with your internal policies before you sign.

5. SaaS subscription/renewal notice period

SaaS renewal is one of the most overlooked details in a SaaS agreement checklist and often the most frustrating.

Vendors should clearly define the notice period and specify a deadline for users who don’t want to renew automatically. If a user chooses not to renew, they must notify the vendor before the notice period stated in the agreement.

For example, if the SaaS agreement requires 30 days’ notice, subscribers must inform the vendor within that timeframe whether they plan to renew or not.

The real challenge? Most enterprises use over 100 SaaS apps – all with different renewal terms. Managing these manually is time-consuming, error-prone and often leads to unexpected auto-renewals.

A 30-day notice is the most common, but some contracts specify 15, 60, 90, or even 180 days. Without a formal process, it’s easy to miss deadlines and pay for services you no longer need.

Make sure the notice period is clearly stated in the contract. Negotiate for a 90-day window if possible to give your team time to evaluate the tool before it renews. Use a centralized contract management system to track all agreements and automate renewal workflows.

Here’s Pratibha Mehta from Falkonry, recalling her experience with CloudEagle and how it helped her team streamline SaaS renewals:

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6. Total SaaS Contract Value

It’s important to know the total contract value and the amount you’ll pay for the full renewal cycle, not just the monthly or annual fee.

The total contract value includes all financial obligations tied to a SaaS agreement across business units. Having a clear view of this gives you an edge when evaluating vendor performance or negotiating renewals.

There are often gaps between what was initially agreed to and what actually ends up being billed.

For example, if your contract states $20,000 but the invoice shows more, it’s worth investigating. The increase could be due to:

• Additional active users beyond the license
• Overage charges
• Opt-ins for new features
• Trial tools that were never canceled but renewed automatically

That’s why it’s smart to review SaaS contracts regularly and track:

• App usage
• Extra feature add-ons
• Any hidden or compounding costs

Instead of managing this manually, use a SaaS spend management platform like CloudEagle to monitor usage, flag redundancies, and surface insights.

With usage data in hand, you can optimize spend, avoid surprise charges, and enter renewal talks with better leverage.

7. Service Level Agreement

SLA is a significant aspect of SaaS agreements you should check while subscribing to a new service.

Typically, all SaaS agreements come with a comprehensive SLA section covering the services vendors ought to provide, including the different performance standards and usability criteria.

The best thing about SLAs is that the vendors must meet the requirements.

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For example, most SaaS agreements offer a 99% uptime percentage, and if the vendor fails to meet it, you can hold them accountable if stated in the SLA.

Suppose you face frequent service interruptions or sluggish performance. In that case, you can report your issues to the company and ask them to make reasonable efforts to resolve them as soon as possible.

Response time is a crucial service level agreement clause that defines the turnaround time for any problem resolution from the vendor side. This clause plays a significant role if you have a substantial dependency on that SaaS.

Subscribe to SaaS agreements only if you are comfortable with their service terms and performance standards.

8. Consumption Metrics and Billing Units

In SaaS agreements, "consumption metrics" are a set of parameters used to measure the usage of the SaaS application. You need to pay close attention to this clause as it’ll help you understand how the vendor will bill you during contract renewals.

The vendor might charge based on:

• Per-user
• Per-feature
• Actual usage volume

Understanding this structure is critical. Without visibility into consumption patterns, teams often end up paying for licenses or features they don’t fully use.

For finance teams and business owners, managing these billing units effectively helps control SaaS expenses. Instead of relying on manual checks, consider using a SaaS management platform like CloudEagle to:

• Track consumption metrics
• Flag underused apps or plans
• Make informed decisions during negotiations

Before signing a SaaS subscription agreement, carefully review how billing is calculated. The consumption metrics and associated charges should be clearly defined and easy to interpret. This ensures you’re only paying for what you actually use and not getting hit with surprises during renewals.

9. Data Handling and Regulatory Compliance

Data handling is another critical aspect that shouldn’t be overlooked in a SaaS agreement checklist.

Data protection plays a central role in SaaS operations, and vendors are expected to comply with relevant regulatory standards when processing personal or corporate data.

You need to know:

• How your vendor stores, manages, and uses your data
• Whether they follow the appropriate compliance frameworks

No buyer wants to be locked into a contract with a vendor who can’t guarantee data security. With regulations like GDPR, CCPA, PCI DSS, and SOC II, many organizations are legally required to work only with compliant providers.

Make sure the vendor’s product aligns with the latest security and compliance standards before signing anything. If you're operating in a region or industry with stricter requirements, confirm that the vendor also complies with exclusive jurisdiction rules relevant to your business.

The SaaS agreement should clearly outline:

• What standards apply
• What compliance certifications the vendor holds
• How data will be handled under those regulations

Don’t assume compliance is a given; get it in writing.

10. Termination policy

We’ve reached the final point in the SaaS agreement checklist. A SaaS contract is incomplete if it doesn’t clearly define the termination clause or policy.

Every vendor will have their own set of rights and conditions that customers must follow. These policies often vary depending on the type of subscription your team is using.

A termination clause should clearly specify:

• Penalties for early contract termination
• Notice period required for cancellation
• Auto-renewal conditions, in case no termination notice is provided
• Data retention and migration steps
• Any post-termination commitments

Most vendors will state that you don’t own the data during the contract period. So when it’s time to terminate, your team needs to clarify:

• How the data will be returned or migrated
• How long the vendor will retain your data
• What security protocols will be followed after termination

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Some vendors may also include hidden charges, especially if licensing rights were breached or services are auto-renewed without clear notice. Ask upfront about these penalties and get written confirmation before signing.

A SaaS contract is only complete if these elements are transparent. If you spot vague, redundant, or unclear clauses, don’t ignore them. Clarify or renegotiate.

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SaaS Agreement Vs. Software License: Know the Difference

In a SaaS agreement, the vendor hosts the product on their server, and the customer pays a subscription fee to use the software. It's called a subscription-based model.

The buyer has no authority over or ownership of the product. The vendor owns it and is responsible for upgrades, maintenance, accountability, and security. The buyer can use it until the SaaS contract is terminated.

In contrast, when it comes to software licenses, the customer purchases a license for the software for a periodic or one-time fee.

The buyer owns the software and is responsible for maintenance and security. It is commonly referred to as a "perpetual license."

A software license can be exclusive or non-exclusive to a specific geographic location, while a SaaS license is typically not limited to a particular region.

The conventional software license agreement often requires installing the software before using it. After the installation, users must configure the software based on their requirements and convenience. In contrast, the SaaS license agreement allows users to directly use the software through the cloud without installing or configuring it.

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Use a SaaS Management Platform to Handle Agreements at Scale

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Reviewing SaaS contracts manually is time-consuming, and it only gets harder as your portfolio grows. But ignoring renewal clauses, termination terms, or usage caps isn’t an option. These details impact spend, compliance, and business continuity.

That’s why growing teams use a SaaS management platform like CloudEagle to centralize contracts, streamline renewals, and automate every part of the subscription lifecycle.

See how Aira centralized their SaaS contracts using CloudEagle.

Here’s how it helps:

A. Contract Management made simple

Centralize all your SaaS contracts in one place no more scattered PDFs, inbox digging, or version confusion.

• CloudEagle uses AI-powered metadata extraction to pull key terms like renewal dates, notice periods, pricing, usage limits, and termination clauses from your contracts automatically.
• Contracts become searchable, sortable, and actionable in seconds.
• During renewals or audits, your team has everything it needs without legal bottlenecks.

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Aira now retrieves contracts instantly during renewals, saving time and avoiding compliance gaps.

B. Renewal Management You Can Rely On

CloudEagle automatically builds a renewal calendar using extracted metadata.
You can:

• Set up workflows that trigger 90 days before renewal
• Route approvals to stakeholders
• Avoid last-minute negotiations or unwanted auto-renewals

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Check out how Wefunder automated their renewals using CloudEagle.

C. Stronger Negotiations, Backed by Data

Contract renewals aren’t just admin, they’re an opportunity to cut costs and improve terms.

With CloudEagle, you get:

• Real-time usage insights tied to each contract
• Benchmarking data to counter vendor pricing
• Visibility into underutilized licenses you can cut

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When your finance, IT, and procurement teams come to the table, they come prepared.

D. Need Help Negotiating? We’ll Handle It for You

Short on time or expertise? CloudEagle offers assisted buying.

Our negotiation experts handle vendor communication, review agreements, and secure better pricing based on your usage patterns so your team can stay focused on strategic work. 

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From procurement and contract visibility to renewals, negotiation, and compliance, CloudEagle is the all-in-one solution to streamline SaaS management.

🎧 Listen to Terry Larock, Head of Procurement at Tipalti, as he shares how he mastered SaaS procurement and secured the best deals for his company.

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Conclusion

Centralize all your SaaS contracts in one place no more scattered PDFs, inbox digging, or version confusion.

• CloudEagle uses AI-powered metadata extraction to pull key terms like renewal dates, notice periods, pricing, usage limits, and termination clauses from your contracts automatically.
• Contracts become searchable, sortable, and actionable in seconds.
• During renewals or audits, your team has everything it needs without legal bottlenecks.

Aira now retrieves contracts instantly during renewals, saving time and avoiding compliance gaps.

B. Renewal Management You Can Rely On

CloudEagle automatically builds a renewal calendar using extracted metadata.
You can:

• Set up workflows that trigger 90 days before renewal
• Route approvals to stakeholders
• Avoid last-minute negotiations or unwanted auto-renewals 

Check out how Wefunder automated their renewals using CloudEagle.

C. Stronger Negotiations, Backed by Data

Contract renewals aren’t just admin, they’re an opportunity to cut costs and improve terms.

With CloudEagle, you get:

• Real-time usage insights tied to each contract
• Benchmarking data to counter vendor pricing
• Visibility into underutilized licenses you can cut

When your finance, IT, and procurement teams come to the table, they come prepared.

D. Need Help Negotiating? We’ll Handle It for You

Short on time or expertise? CloudEagle offers assisted buying.

Our negotiation experts handle vendor communication, review agreements, and secure better pricing based on your usage patterns so your team can stay focused on strategic work. 

From procurement and contract visibility to renewals, negotiation, and compliance, CloudEagle is the all-in-one solution to streamline SaaS management.

🎧 Listen to Terry Larock, Head of Procurement at Tipalti, as he shares how he mastered SaaS procurement and secured the best deals for his company.

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Conclusion

A well-structured SaaS agreement isn’t optional; it’s protection. That’s why we created this checklist: to help you catch the fine print before it costs you.

CloudEagle simplifies how you manage your SaaS contracts, vendors, and renewals – all in one place. With features like automated vendor discovery, usage-based negotiation support, and renewal workflows, it helps you control spending and stay compliant.

Whether you're a fast-scaling startup or an enterprise managing hundreds of apps, CloudEagle gives you the visibility and control to make smarter decisions.

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