What is Hosted Services Agreement Drafting?
A hosted services agreement is a legal contract between a customer and a service provider. It establishes terms and conditions for how the provider will host and operate websites, data storage, or software-as-a-service (SaaS) solutions, in exchange for payments.
Read the rest of this article to explore key terms in a hosted services agreement, how to draft it, and how a lawyer can help you to ensure all the terms are clear and fair to both parties.
What are Key Terms in a Hosted Services Agreement?
It’s common for a hosted services agreement to contain the following key terms:
- Service description. Explain the exact services to be provided, such as by specifying the software application, storage, or other tasks.
- Service level agreement (SLA). Set clear performance metrics and support response times to maintain quality.
- Data ownership and privacy. Clarify that the client or customer will retain data ownership.
- Payments. Outline all payment terms, such as how subscription cycles will be conducted.
- Limitation of liability and indemnification. Make sure you fairly allocate risk for things that could go wrong, such as service outages.
- Termination. Specify the exit terms, such as notice periods required and post-termination obligations.
How Do You Draft a Hosted Services Agreement?
A hosted services agreement needs to provide clarity about all services provided and protect personal data that’s used by parties. To prevent issues, here are some things to bear in mind when drafting the agreement.
Identify the Services
Make sure that it’s clear which parties are responsible for what obligations. When explaining what services are provided, mention exclusions so that parties’ expectations are aligned. For example, perhaps the provider won’t include software updates or storage services.
Include Service Levels
To maintain quality service, you want to include service-level commitments, such as uptime calculations, maintenance windows, incident responses, and technical support. Be as detailed as possible for transparency.
Verify Data Protection
To prevent data misuse or violations, your agreement must state which party will ensure the hosted environment and customer data is secured. You want to detail security provisions, such as encryption, incident notification, and deleting data that’s no longer required.
Outline all Payment Terms
Subscription charges and hosting fees must be properly stated. Think about additional costs, such as setup costs and renewal fees, so that nothing is left out. You should also break down all the payment processes, such as when payments are made, when invoices are required, and what charges apply for a lack of payment.
Consider Liability
Make it clear which party is liable for things that can go awry, such as a loss of data, service interruptions, or breaches of the agreement terms. Set fair liability restrictions to protect both parties’ interests.
Should You Hire a Lawyer for Hosted Services Agreement Drafting?
A hosted services agreement can be challenging to draft because it can involve sensitive data and important business applications. This is why hiring a lawyer to draft it for you is advisable.
A lawyer can help you in various ways when drafting the contract, such as:
- Keeping the contract legally compliant. A lawyer will ensure that all terms are aligned with relevant laws and regulations to prevent non-compliance.
- Defining the services scope. They’ll accurately describe the hosting services and how tech support is handled. This prevents disagreements over what the provider is going to deliver.
- Protecting your confidential information. They’ll include clauses in the agreement that navigate data ownership and confidentiality to prevent misuse.
- Fairly allocating liability. To prevent financial losses, a lawyer will ensure that parties know who is liable for hosting failures. They’ll include liability restrictions and remedies.
- Negotiating agreement terms. If required, a lawyer can discuss and negotiate terms in the hosted services agreement with the other party so that the final contract is balanced and mutually favorable.
- Reviewing the agreement. If you’ve already drafted a hosted services agreement, you can hire a lawyer to thoroughly review it so that all its terms are clear and protect your interests.
Where to Find a Lawyer for Hosted Services Agreement Drafting
If you’d like to connect with a qualified lawyer to draft your hosted services agreement, you don’t have to stress by trying to find a lawyer who can help you. By using an online legal platform from the comfort of your home, you’ll gain access to a range of lawyers who have contract drafting and review experience.
ContractsCounsel is one of the largest online legal marketplaces that connects clients with a curated network of lawyers who have been vetted on the platform.
To request that a lawyer on ContractsCounsel drafts your contract, here are the easy steps to follow.
- On your device, go to the ContractsCounsel marketplace.
- Select ‘One-time project’ and ‘Create or update contract.’ Or, you should select ‘Contract review’ if you’d prefer a lawyer to review your agreement.
- Post your project. Include some details of what you need to match with suitable lawyers, such as the type of hosted services you need for your specific purposes.
- Wait for bids. Instead of having to search for a lawyer, lawyers directly on the platform will send you multiple bids to work on your project.
- Review the platform’s lawyer data. This information includes the lawyers’ location, field of expertise, credentials, years of experience, and client ratings for previous projects they’ve completed on the platform.
- Select a lawyer. After reading the lawyers’ information, choose a lawyer to hire. They’ll draft or review a hosted services agreement for you for a flat fee.
