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Dossiers internationaux

Practice review: governing law and liability caps in cross-border SaaS contracts

A cross-border SaaS dispute usually turns on governing law, liability caps, and data clauses.

A typical scenario (not a specific real case): a SaaS provider and an overseas enterprise customer dispute compensation for an outage, and the outcome turns on the contract's governing law, liability cap, and SLA.

Common flashpoints in cross-border SaaS contracts also include data-processing and security responsibility, IP, and exit and data-return mechanisms; unclear wording easily becomes a dispute.

The review's point is to write the SLA, liability cap, data clauses, and dispute resolution clearly, and choose a mechanism enforceable where the counterparty holds assets.

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