Subscription Agreements 101

Note: Want to skip the guide and go straight to the free templates? No problem - scroll to the bottom.
Also note: This is not legal advice.

Introduction

Subscription agreements are a crucial part of any business operations, yet are often overlooked by small firms. Here, Genie AI - the world’s largest open source legal template library - provides insight into the importance of these agreements and how you can use them to protect both your business and your customers.

Having a subscription agreement in place is an essential contractual obligation between two parties, providing terms of service that outline responsibilities and results as well as payment terms and any restrictions. Without this agreement, there is no legal protection should one party fail to fulfill their duties; it also serves as proof of the agreement should a dispute arise with one party making claims against the other. Additionally, having such an agreement helps control customer experience by establishing services and expectations for both parties involved – plus setting out any additional guidelines that must be followed in order to receive services provided.

All these factors mean that subscription agreements are important for protecting your business from unwanted claims or litigation and ensuring customer satisfaction through meeting their needs. By taking the time to create a comprehensive subscription agreement, you can not only guarantee security but provide evidence as to what was agreed upon from the very beginning.

At Genie AI we understand how daunting it can be trying to make sense of all this information – which is why we provide free templates for anyone wanting access our template library today. With millions of data points informing what a market-standard subscription agreement looks like, our team wants to help you draft high-quality documents without even needing an account with us! So read on below for our step-by-step guidance if you’re looking for further information on how best go about creating your own contracts today!

Definitions (feel free to skip)

Party - An individual or group of people involved in a contract or agreement.
Legal obligations - Obligations that are required by law.
Expectations - Desired outcomes or results.
Requirements - Necessary conditions that must be met.
Warranties - Promises of quality or performance.
Guarantees - A promise to replace or refund in case of dissatisfaction.
Currency - Money or other assets used as a medium of exchange.
Taxes - Money collected by a government from its citizens to pay for public services.
Termination - The end of a contract or agreement.
Cancellation - The act of ending a contract or agreement before it is due to expire.
Duration - The length of time a contract or agreement is in effect.
Renewal - The act of extending a contract or agreement beyond its original expiration date.
Rights - A legal entitlement to do something or to have something done.
Obligations - A duty or responsibility to do something.
Indemnifications - Protection from loss or damage.
State laws - Regulations or statutes enacted by a state government.
Legal issues - A potential problem or dispute related to the law.
Formal language - A type of language that is used in official or professional contexts.
Terminology - A specialized set of words or phrases used in a particular field.

Contents

• Defining the parties involved in the agreement
• Identifying the names and addresses of each party
• Outlining any relevant legal obligations, such as licensing and permits
• Identifying the service or product provided
• Clarifying any expectations and/or requirements
• Addressing any warranties and/or guarantees
• Establishing the price and payment terms
• Specifying the amount of payment
• Identifying the currency of payment
• Outlining any payment options
• Determining the payment schedule
• Identifying any applicable taxes
• Calculating the applicable taxes
• Specifying who is responsible for paying the taxes
• Addressing termination and cancellation terms
• Outlining how and when the agreement can be terminated
• Specifying who is responsible for any associated costs
• Outlining how any disputes will be resolved
• Establishing the duration of the agreement
• Specifying the start date
• Identifying any renewal options
• Addressing any additional terms and conditions
• Clarifying any additional rights and obligations
• Identifying any specific exclusions
• Understanding how state laws might affect the agreement
• Determining the applicable state laws
• Assessing any potential legal issues
• Drafting the agreement
• Writing the agreement using formal language
• Making sure that all necessary information is included
• Having the agreement reviewed by a lawyer
• Finalizing the agreement
• Having both parties sign the agreement
• Making copies of the agreement for both parties
• Keeping a record of the agreement

Get started

#ERROR!

FAQ:

Q: What are the differences between subscription agreements and other types of contracts?

Asked by Tim on July 12th, 2022.
A: Subscription agreements differ from other types of contracts in that they can be continually renewed over time, and the terms of the agreement are often renegotiated or amended as needed. These agreements are typically used when there is a need for ongoing services, such as subscription-based software or access to certain content. The terms of a subscription agreement will include the duration of the service, fees associated with the service, and rights and obligations of both parties. Unlike other types of contracts, subscription agreements may also include provisions for automatic renewal or termination.

Q: How can I ensure my subscription agreement is legally binding?

Asked by John on May 17th, 2022.
A: To ensure your subscription agreement is legally binding, it should include the names of both parties, describe the services to be provided in detail, specify the duration and cost of the service, outline any termination procedures, and be signed and dated by both parties. Additionally, depending on the jurisdiction, you may need to register it with a court or register of deeds as an additional measure of protection.

Q: What should I consider when creating a subscription agreement?

Asked by Rebecca on August 26th, 2022.
A: When creating a subscription agreement it’s important to consider all applicable laws and regulations relevant to it. You should also consider what type of payment structure is most appropriate for your business model (e.g., monthly payments vs annual payments), what rights and liabilities each party has in relation to the service provided (e.g., confidentiality obligations), and any termination clauses that may be included in the agreement. Additionally, it’s important to consider any additional clauses that may be necessary for your specific business needs (e.g., clauses related to intellectual property rights).

Q: How does a subscription agreement differ from a service agreement?

Asked by Ashley on April 8th, 2022.
A: A service agreement is typically used when one party provides services to another party over a set period of time for an agreed-upon fee or compensation. This type of agreement usually outlines the services that will be provided, the fees associated with those services, and any other terms related to the contract (e.g., payment terms). A subscription agreement differs from a service agreement in that it typically includes provisions for ongoing services or access to certain content over an extended period of time, with provisions for automatic renewal or termination built into the contract. Additionally, subscription agreements will often include additional clauses related to rights and liabilities specific to that particular subscription service (e.g., confidentiality obligations).

Q: How do I know which jurisdiction applies to my subscription agreement?

Asked by Scott on August 4th, 2022.
A: The jurisdiction applicable to your subscription agreement will depend on where you are conducting business and where you are providing services. Generally speaking, if you are conducting business within the US then US law will apply; if you are conducting business within the UK then UK law will apply; and if you are conducting business within the EU then EU law will apply. It’s important to understand which jurisdiction applies as this can affect how you structure your agreement and any additional clauses that may need to be included in order for it to be legally binding.

Q: Is it necessary for me to register my subscription agreement with a court or register of deeds?

Asked by Jennifer on June 15th, 2022.
A: Whether or not it’s necessary for you to register your subscription agreement with a court or register or deeds will depend on your jurisdiction and any applicable laws governing such agreements in that jurisdiction. Generally speaking, if you are conducting business within the US then registration with a court or register of deeds may not be necessary; however if you are conducting business within the UK or EU then registration may be required in order to ensure your agreement is legally binding. It’s important to consult with an experienced attorney who can advise you on whether registration is necessary in your particular situation.

Q: What types of payment structures can I include in my subscription agreement?

Asked by Emily on December 22nd, 2022.
A: The type of payment structure included in your subscription agreement will depend on your specific business needs and model (e.g., SaaS vs B2B). Generally speaking, these types of agreements can include provisions for monthly payments, annual payments, pay-per-use payments (e.g., pay-per-view), pre-payment discounts (e.g., paying for an entire year upfront), discounts based on usage levels (e.g., volume discounts), etc. It’s important to consider all applicable laws and regulations when structuring your payment terms as well as what type of payment structure best suits your particular business needs and model before including them in your agreement.

Q: What types of termination clauses should I include in my subscription agreement?

Asked by David on February 6th, 2022.
A: Termination clauses should be included in any type of contract that outlines ongoing services or access over an extended period of time - such as a subscription agreement - as they provide clarity around how either party can terminate their contractual relationship at any given time without breaching their obligations under the contract itself. Commonly included termination clauses include provisions for early termination due to non-payment or breach of contract (i.e., providing notice prior to terminating), automatic renewal clauses (i.e., providing notice prior to renewal), termination due to change in circumstances (i.e., changes in industry regulations or legal requirements), etc… It’s important to consult with an experienced attorney who can advise you on which termination clauses should be included based on your particular situation and jurisdiction before including them in your agreement

Example dispute

Suing a Company due to Breach of Subscription Agreement:

• Identify the breach of the subscription agreement, such as failure to provide services as stated in the agreement or other terms which have not been honored.
• Gather evidence to prove the breach, such as documents, emails, or other proof.
• File a lawsuit in civil court, citing the subscription agreement and the breach.
• Try to negotiate a settlement with the company, such as a refund or other compensation.
• If the case goes to trial, the plaintiff must prove that the subscription agreement was indeed breached and that there were damages as a result.
• If the plaintiff is successful, the court may award damages, including economic losses, legal fees, and other costs.

Templates available (free to use)

Investment Subscription Agreement
Investor Subscription Agreement
Llc Subscription Agreement
Master Subscription Agreement
Model Shareholders And Subscription Agreement Bvca
Note Subscription Agreement
Preferred Stock Subscription Agreement
Private Placement Subscription Agreement
Saas Software Subscription Agreement Pro Customer
Share Subscription Agreement
Software Subscription Agreement
Standard Share Subscription Agreement For Employees Or Directors
Stock Subscription Agreement
Subscription Agreement For Common Shares
Unit Subscription Agreement

‍