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Software & SaaS

Use case · Legal

Reviewing a customer’s master services agreement: liability, SLA and data

A large customer sends its own MSA for a SaaS deal. Review liability, service levels and data terms under English and German law, and send the issues list.

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Legal counsel in a light blue shirt and braces turning the pages of a printed contract in a quiet office

This task, run in azta

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Attached is a German retailer’s MSA, governed by German law, for our SaaS platform. We are a UK company.
UK · DE
Researching

Reading your files

Searching legislation.gov.uk

Searching Gesetze im Internet

Searching Rechtsprechung im Internet

German standard terms are reviewed by the courts. Under German law, standard business terms are subject to review by the courts even between businesses. A clause in the customer’s own terms that unreasonably disadvantages the supplier can be invalid, and the supplier can rely on that.
Negotiated terms are treated differently. Terms that were genuinely negotiated are not standard business terms. German courts set a high bar for that, so what is marked up and agreed changes the analysis clause by clause.
Limits on excluding liability. Under German law, liability for intent cannot be excluded in advance. Under English law, liability for death or personal injury caused by negligence cannot be excluded, and other exclusions in standard terms must be reasonable.
Service credits need a defined role. Whether service credits are the only remedy for downtime, or come on top of damages and termination, depends on the drafting. Say it expressly, and define how uptime and maintenance windows are measured.
Draft the issues list
saas-msa-review.docx
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MSA for the forecasting platform: our positions

Liability, clause 14. Propose a cap at twelve months’ fees for all claims, with a separate higher cap for data-protection claims. Liability for intent, and for injury to life, body or health, stays uncapped.

Service levels, Annex 3. Measure availability monthly, excluding scheduled maintenance notified 48 hours ahead. Service credits are the customer’s sole financial remedy for missing the target, with a right to terminate after three consecutive misses.

Data and audit, clause 17 and Annex 5. Replace the on-site audit right without notice with an annual audit on 30 days’ notice, met first by our independent audit reports. The data processing terms follow our standard DPA.

Sources · legislation.gov.uk · Gesetze im Internet · Rechtsprechung im Internet
Saved

A replay of this page’s example. In azta every line of the answer carries a citation that opens the provision itself.

The situation

A customer’s master services agreement on its own paper, uploaded

A Leeds-based SaaS company is closing a deal with a German retailer for its demand-forecasting platform. The customer’s procurement team sent its standard master services agreement, governed by German law, with an annex for service levels. Sales wants to sign by quarter end. Counsel has 60 pages and three days.

The commercial terms are fine. The risk sits in the boilerplate: uncapped liability for data breaches, service credits that are not an exclusive remedy, an uptime promise measured monthly with no maintenance windows, and audit rights without notice. Each point needs a position the business can hold in negotiation.

What the research has to settle

The rules behind the answer

German standard terms are reviewed by the courts
Under German law, standard business terms are subject to review by the courts even between businesses. A clause in the customer’s own terms that unreasonably disadvantages the supplier can be invalid, and the supplier can rely on that.
Negotiated terms are treated differently
Terms that were genuinely negotiated are not standard business terms. German courts set a high bar for that, so what is marked up and agreed changes the analysis clause by clause.
Limits on excluding liability
Under German law, liability for intent cannot be excluded in advance. Under English law, liability for death or personal injury caused by negligence cannot be excluded, and other exclusions in standard terms must be reasonable.
Service credits need a defined role
Whether service credits are the only remedy for downtime, or come on top of damages and termination, depends on the drafting. Say it expressly, and define how uptime and maintenance windows are measured.

How it runs in azta

From the question to the document

The question, as you would type it

Attached is a German retailer’s MSA, governed by German law, for our SaaS platform. We are a UK company. Which liability and SLA clauses could be challenged under the German rules on standard business terms, can we cap liability for data breaches, and how should service credits be drafted to be the exclusive remedy?
  1. You start with

    A customer’s master services agreement on its own paper, uploaded

  2. 01

    Upload the agreement

    Add the MSA and its annexes. azta reads them in German and points to the clause behind each finding.

    File upload· Pro
  3. 02

    Research the governing-law rules

    Ask how German law treats each liability and SLA clause in standard terms, and where English law would differ. azta cites the statutes on both sides.

    Cited research· Free
  4. 03

    Find the decisions on the disputed clauses

    Ask how the German courts have treated liability caps in standard business terms. azta summarises the decisions with links to the full text.

    Case-law search
  5. 04

    Draft the issues list

    Ask for an issues list by clause with the risk, the rule and a proposed position. Edit it in Canvas.

    Canvas · Ask azta· Pro
  6. You send

    An issues list with positions on liability, service levels and data terms

What you get

An issues list with positions on liability, service levels and data terms

Issues list · draft

MSA for the forecasting platform: our positions

Liability, clause 14. Propose a cap at twelve months’ fees for all claims, with a separate higher cap for data-protection claims. Liability for intent, and for injury to life, body or health, stays uncapped.

Service levels, Annex 3. Measure availability monthly, excluding scheduled maintenance notified 48 hours ahead. Service credits are the customer’s sole financial remedy for missing the target, with a right to terminate after three consecutive misses.

Data and audit, clause 17 and Annex 5. Replace the on-site audit right without notice with an annual audit on 30 days’ notice, met first by our independent audit reports. The data processing terms follow our standard DPA.

Illustrative excerpt. A real draft is built from your facts and cites the provisions it relies on.

Outcomes on your numbers

What azta is worth on this task

Pro pays for itself after

13 minutes a month

At €130 an hour, that is all the time Pro (€27 a month) has to take off your desk to cover its price.

Example figures. Replace them with your own.

10%50%
Hours back a year
43
Capacity at your rate
€5,616
More customer contract reviews a quarter
2.2
Return on Pro
17.3×
Hours a year on this task
Today180 h
Your scenario137 h
  • Research
  • Drafting
  • Your review

A scenario you set, not a promise. The hours that come back go to another client, or deeper into this one.

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Sources azta searches here

  • legislation.gov.uk
  • Gesetze im Internet
  • Rechtsprechung im Internet
See the full source register

What stays with you

  • The commercial trade-offs and the walk-away points.
  • The negotiation with the customer.
  • Final approval of the agreement.

Frequently asked questions

Can azta compare the MSA with our own template?
Upload both and ask for a clause-by-clause comparison. On Enterprise, the knowledge space can hold your approved positions, cited separately from the law.
Does it work with contracts in German?
Yes. azta reads the agreement in German and answers in English, with citations to the German provisions in the original.
Is the customer’s contract used for training?
No. Client documents are never used for training on any plan, and they stay in the EU/EEA.

Book a demo

See the issues list built from your own case.

Bring a real question and watch azta research it and draft the document. If your team would use it, we set up Enterprise with your templates and workspaces.

  1. 1

    Bring a real question

    One from this week, with the facts you would give a colleague.

  2. 2

    We run it in azta with you

    You watch the research and open the citations against the provision.

  3. 3

    You see the draft it produces

    Then we plan a trial with your team, if it fits your work.

  • Client data is never used for training
  • Data stays in the EU/EEA
  • Shared workspaces, templates and SSO on Enterprise

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