Recent Answers to Technology Law Questions

I recently started a tech company with a partner and we signed a startup agreement that outlined each of our roles, ownership percentages, and profit distribution. However, as our business has grown and evolved, we have realized that some aspects of the agreement need to be modified to better reflect our current needs and goals. We are wondering if it is possible to make changes to the startup agreement after it has already been signed, and if so, what would be the process and potential implications of doing so?

Dawn K.

Answered Apr 15, 2025

Congratulations on your business growth and evolution! I'll answer the question without having seen the actual agreement, so this is just based on broad contract principles. Yes, you can change an agreement after it is signed, and there are a few ways to do so. If it is just a few terms, you may be able to do a written "modification" that becomes the new terms of the agreement and the rest stays. There is also, again depending on how much you want changed, a process of "novation" where we substitute a new contract for the previous one. It has specific language in it, but it is also available. These are the two primary ways to change the agreement where there are no disputes and all parties agree to the changed or new terms. Congratulations again!

I recently signed up for an online service and agreed to their Terms and Conditions, which included a clause stating that they can modify the terms at any time without prior notice. However, I have now discovered that the company has made significant changes to the Terms and Conditions, and I was not notified about these changes. I am concerned about the legality of this situation and whether the company can modify the terms without any form of notification to its users.

Muhammad Yar L.

Answered Jul 5, 2024

While the general practice is to at least provide users the notice for any material change. However, Companies often include such clauses to allow them to modify any terms without notice. The legality of such language depends on many factors: (a) the interpretation of such language in the terms, (b) the nature of the changes, and (c) the applicable laws governing such terms. However, many courts and regulators expect companies to provide reasonable notice of significant changes, even if the terms state otherwise.

I recently started a software as a service (SaaS) business and I am looking for legal advice related to SaaS agreements and customizations. I need to understand what is legally required in order to customize my SaaS offering for my customers and ensure that I am in compliance with all applicable laws and regulations. I am also looking for advice on how to structure my SaaS agreement to ensure that my customers are adequately protected.

Thomas L.

Answered Aug 4, 2023

SaaS agreements are not specifically regulated by law. Thus the principal issue is financial responsibility for outages, loss of data, and failure to meet transaction rate requirements.

I am the owner of a software development company that is looking to enter into a SaaS Agreement with a client. I want to ensure that both parties are held accountable for any potential service interruptions or other issues that may arise during our agreement, so I am looking for advice on the best type of SLA penalties to include in the agreement.

Thomas L.

Answered Jun 30, 2023

The issue is the financial consequences of outages. Third party outages, your outages, and the customer's outages, and who pays (if anything) for each of those.

I am a software developer and I am currently in the process of negotiating a software agreement with a potential customer. I am looking to understand which governing law would apply to such an agreement. This is important for me to understand in order to make sure that both parties are adequately protected in the event of any disputes or other issues that may arise from the agreement.

Thomas L.

Answered Jun 16, 2023

I have drafted software agreements for countries throughout the world, and in nearly every US state. I can give an analysis of your various choices.

I am a software developer looking to create a SaaS product. I am looking to create an agreement that outlines the responsibilities and liabilities of both parties involved. I am concerned about liability limitations in the event of a dispute or breach of contract, and want to make sure that both parties are adequately protected.

Thomas L.

Answered Jun 16, 2023

I have considerable experience with SaaS agreements. Liability for errors in the software is a specific negotiation between the parties, based on what damages are likely from the errors, and always exclude consequential damages.