Why and how do you draft your SaaS contracts without legal jargon?
Drafting contracts in simple language is recommended to reduce misunderstandings and the effectiveness of contracting: a few tips.
When it comes to drafting SaaS contracts, the temptation to use traditional legal jargon is strong, as this is often how lawyers were trained. However, adopting clear, concrete and accessible language can be much more effective in practice.
I discovered in the field the importance of writing simple and operational contracts. The aim is for each party to immediately understand their obligations without having to decode complex clauses. A simple clause avoids misunderstandings, speeds up negotiations and allows everyone to better fulfill their contractual commitments.
It is better to use direct terminology (“you”, “us”) rather than indirect or impersonal. Indeed, clarity always takes precedence over legal elegance. A direct clause, even if academically imperfect, is better than a complex clause that is a source of various interpretations.
Here are some concrete examples of how a clear and direct clause can simplify the contractual relationship:
Payment
“You receive the bill on the 1st of the month, payable after 30 days. In case of a delay of 10 days, an automatic reminder is sent to you.”
This clause clearly explains the payment deadlines and the consequences of a delay without ambiguity.
SLA (service level)
“If the service is unavailable for more than 30 consecutive minutes, you will be notified by email. If there is an accumulated unavailability of more than 2 hours per month, you automatically receive a 5% credit note.”
Here, the clause specifies the exact conditions for the availability of the service and the compensation provided in the event of non-compliance, without excessive technical jargon.
User account management
“You freely manage your users (add/delete) from your administrator interface. In case of technical problems, contact support at support@xxx.com, who will answer you within 24 hours.”
This clause simply details the practical methods of managing users and technical support.
Termination of the contract
“You can cancel via email sent to contrat@xxx.com, with at least 30 days' notice prior to the anniversary date.”
The termination is thus clearly defined, avoiding any doubts about the procedure to be followed.
Rate change
“We notify you of any price change at least 60 days before it is implemented by email. In case of refusal, you can cancel immediately at no cost.”
This clause guarantees complete transparency in the event of price changes, specifying the rights of each of the parties.
A non-academic, but very useful, approach is to incorporate examples directly into contract clauses. This method is particularly effective for SLA clauses or penalties. Examples help to realize sometimes abstract obligations and facilitate immediate understanding.
This way of drafting contracts is not yet common among all lawyers, but it is gaining ground for good reasons:
As a lawyer working with SaaS publishers, I strongly encourage the use of simple, clear and direct language in your contracts. Reducing legal jargon and adopting an operational approach makes life easier for all parties involved and contributes directly to business and operational performance.
If you want to review your contracts to make them more accessible, I am at your disposal to support you in this process, which is essential to your success.
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I have been supporting software and SaaS companies for more than 10 years, to structure their business, protect their intellectual property and improve their contracts.
