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Terminating the Cloud agreement
Under most laws, the provisions of a continuing obligation also apply for
Cloud computing. However, e.g the German standard contract types under
the German Civil Codeenvisage different provisions for cancellation. It is
therefore necessary to regulate cancellation expressly in the contract.
The user should ensure that a period of notice is agreed which actually
allows him to change to its own systems, or to another Cloud service
provider. From the provider's point of view the period of notice must be
selected so as to allow a potential "advance performance" by a third party.
Some laws impose restrictions on wording cancellation terms in the general
terms and conditions of business for permanent obligations for the delivery
of goods or the providing of services or works.
Billing (from a legal viewpoint)
One of the authoritative criteria for outsourcing into the Cloud is billing for
services on a flexible basis.
The problem is that whilst it is absolutely essential that billing reflects the
user's needs, these needs very often only arise "on the project", that is in
the scope of implementing the application, and thus after signing the
contract. One important legal requirement is thus flexibility in billing rules. It
should be possible to modify the billing mode, if it turns out to be unsuitable
for the required structure.
The term of the agreement plays an important role. To avoid the need to
terminate the contract (and if possibly even before the due date), the billing
modes should be modified in a mutual agreement.
Another major topic is the verifiability of the billing criteria. Ideally, the user
will receive an understandable and complete list of services rendered for
each billing period, stating the prices charged for the individual items. Of
course, there are no limits to the extent to which one can regulate this; the
contract could contain a contestation period and possibly even envisage
verification of the billing by an arbitrator in case of dispute.
Choice of forum clauses
The best contract is of limited value if it is impossible to assert the
entitlements and obligations stated in the contract with the help of a court.
When it comes to asserting rights, the question of the court responsible for
hearing the dispute is important. The court competent for deciding on a
dispute can be defined by choice of forum validly agreed upon between the
