Explainer
Software companies typically rely on a small set of core agreements to govern how customers access and use their services.
Most SaaS companies operate using a combination of the following documents:
Not every company uses all of these documents in every situation, but these are the most common components of a SaaS contract framework.
Terms of Service define the rules governing access to the software.
They typically address topics such as:
For many self-serve products, customers accept the Terms of Service online during signup or checkout.
If you're unfamiliar with this structure, see:
A Privacy Policy explains how a company collects, uses, and shares personal information.
This document is typically required for any service that collects user data.
Privacy policies often address:
An Acceptable Use Policy defines prohibited uses of the service.
This document helps prevent misuse of the platform by restricting activities such as:
Many SaaS companies incorporate their AUP into their Terms of Service or MSA.
An MSA is typically used when customers require a signed contract.
The MSA establishes the legal framework for the relationship between the software vendor and the customer.
It often includes provisions addressing:
For a deeper explanation, see:
An Order Form contains the commercial details of a specific subscription.
These typically include:
The Order Form usually incorporates the MSA by reference and applies it to a particular purchase.
For more detail, see:
A DPA governs how a vendor processes personal data on behalf of customers.
DPAs are commonly used when SaaS providers process customer data that may be subject to privacy laws such as GDPR.
They typically describe:
A Security Addendum describes the vendor’s security practices for protecting customer data.
These documents often provide high-level information about topics such as:
Many software companies combine these documents into a structured system:
This approach allows the same legal framework to support different sales motions while keeping contracts consistent.
Baseline Terms provides a standardized bundle of SaaS contracts designed for founders who want consistent, non-negotiable legal terms.
The bundle includes all of the core documents described above, along with a short implementation guide explaining how they work together.