Creating A Hosting Agreement

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

Creating a hosting agreement is an essential element in protecting any business or organization. A hosting agreement, or service-level agreement, is a legally binding contract between a service provider and customer; outlining the services to be provided, relevant terms and conditions, and remedies in case of any failure to meet expectations. With Genie AI’s open source legal template library - now the world’s largest - anyone can draft and customize high quality agreements without paying a lawyer.

Having an agreement in place prevents misunderstandings between both parties by clarifying their respective rights and obligations. It sets out precisely what services are provided by the host, payment terms as well as any limitations on customers’ use of the services. Moreover, establishing a hosting agreement helps protect both parties from potential disputes: customers will have legal recourse should their host fail to provide expected services; while suppliers can take action against customers who breach obligations or fail to make payments on time. Lastly, it also provides clients with assurance that their data and intellectual property remain secure within the service provider’s cloud environment.

Ultimately, having a hosting agreement is necessary for protecting businesses or organizations from potential issues related to service providers - financial losses due to non-payment being one example - while still addressing customer needs appropriately. To assist with this process our Genie AI team has developed step-by-step guidance on how to access our template library today; helping you create your own market standard hosting agreements quickly and effectively for free! Read on below for more information about how we can help you protect your business today!

Definitions (feel free to skip)

Parties: People or organizations involved in a contract or agreement.
Objectives: Goals or aims that the agreement seeks to achieve.
Duration: The length of time that the agreement is valid for.
Payment Terms: The details of how and when payment is to be made.
Responsibilities: The duties or tasks that are expected of each party.
Rights: The entitlements or privileges of each party.
Privacy/Security Policies: Rules that outline how customer data is to be managed and protected.
Dispute Resolution: The process for resolving disagreements or issues.
Termination Terms: The conditions for ending the agreement.
Additional Terms: Clauses or provisions that are added to the agreement.

Contents

• Identifying the parties involved
• Names of each party
• Contact information for each party
• Roles of each party
• Defining the objectives of the agreement
• What services will be provided
• What the hosting provider will deliver
• Establishing the duration of the agreement
• How long the agreement will last
• Terms of renewal, if any
• Setting out the payment terms
• How much will be paid
• When the payment will be made
• What form the payment will take
• Establishing the hosting provider’s responsibilities
• What duties will the hosting provider have to fulfill
• Outlining the customer’s rights and responsibilities
• What the customer can expect from the hosting provider
• Any obligations the customer must meet
• Establishing privacy and security policies
• What measures the hosting provider will take to ensure the safety of customer data
• Addressing dispute resolution
• How any disagreements or issues will be handled
• Establishing termination terms
• Conditions under which either party may terminate the agreement
• Including any additional terms
• Any other matters that should be included in the agreement

Get started

Identifying the parties involved

• Determine who will provide the hosting services (the “Host”) and who will receive the services (the “Client”)
• Research and make sure the parties involved are legally allowed to enter into the agreement
• Write down the full legal names of each party for the agreement
• Make sure the parties are in agreement about the services provided and the terms of the agreement

Once you have determined the parties involved, written down their full legal names, and made sure they are in agreement about the services provided and the terms of the agreement, you can check this step off your list and move on to the next step.

Names of each party

• Identify the name of each party in the hosting agreement.
• The hosting agreement should clearly identify the names of each of the parties involved.
• Make sure to use the full legal name of each party.
• When you have identified the name of each party, you can move on to the next step.

Contact information for each party

• Collect the contact information of each party, including full name, address, phone number, and email address
• Record this contact information for each party in the agreement
• Make sure to double-check the contact information is correct to ensure communication can be established in the future
• Check off this step when you have recorded all the contact information for each party in the agreement

Roles of each party

• Identify the roles of the two parties involved (i.e. the hosting provider and the customer).
• Describe the roles and responsibilities of each party, including their duties and obligations.
• Make sure to include details such as who is responsible for maintenance and support, who has access to the hosting services, and who is responsible for any fees or charges associated with the hosting services.
• Once you have identified the roles of each party and described the duties and obligations, you can move on to the next step.

Defining the objectives of the agreement

• Draft an outline of the hosting agreement, outlining the key objectives and commitments of each party
• Identify any additional clauses or provisions that need to be included in the agreement
• Outline the expected timeline and any deadlines for the hosting agreement
• Draft any non-disclosure or confidentiality clauses necessary
• Agree on the language of the agreement
• When all the objectives of the agreement have been outlined and agreed upon, you can move on to the next step.

What services will be provided

• Identify the type of hosting services that the provider will be responsible for delivering
• Make a clear distinction between services that will be included and those that will be excluded
• Include a list of services that the hosting provider will provide, including any additional features or services
• Specify the terms of the hosting provider’s responsibilities, such as maintenance, support, and security
• Outline the hosting provider’s duties, such as the frequency of data backups
• Detail the hosting provider’s liability for any damages incurred due to their services
• When complete, review the list of services and make sure it accurately reflects the agreement between the parties

What the hosting provider will deliver

• Gather information from the client about their hosting needs
• Create a detailed list of services the hosting provider will deliver
• Detail the technical requirements for the hosting services, including storage, speed, and security
• Establish a timeline for the delivery of services
• Ensure the timeline is realistic and achievable
• Note any additional services or requirements the hosting provider will need to provide
• Once all information is gathered and the hosting provider is able to deliver the services as outlined, the step is complete.

Establishing the duration of the agreement

• Decide on the length of the hosting agreement - this can be one month, one year, or multiple years
• Consider the terms of the agreement - will it be automatically renewed or do you need to renew manually before the expiration date?
• Determine the payment schedule - will you pay monthly or in advance?
• Include these details in the hosting agreement
• Once all the details are established, you can move on to the next step.

How long the agreement will last

• Estimate how long the hosting agreement will last - one year, two years, etc.
• Decide if there will be an option to renew the agreement after the initial period ends
• Make sure to include the estimated start and end dates of the hosting agreement in the contract
• Check off this step when you have a clear understanding of how long the agreement will last.

Terms of renewal, if any

• Decide if you will require the customer to renew their hosting agreement annually or bi-annually.
• Specify in the agreement if the customer will have an option to renew and provide details of the renewal process.
• Include a clause in the agreement that specifies the rate of renewal fees and any additional fees that may apply.
• Once you have included all of the necessary terms of renewal in the agreement, you can check this off your list and move on to the next step.

Setting out the payment terms

• Outline how much will be paid, when it will be paid and how payment should be made
• Specify any late payment fees and how they will be applied
• Include a clause that all payments are nonrefundable
• Add a clause that states the service will not be provided until payment is received
• When all payment terms have been outlined, you can check this step off your list and move on to the next step.

How much will be paid

• Decide on the hosting fee and make sure it is included in the agreement
• Explain in detail what services are included in the hosting fee
• Outline any additional fees that might be incurred
• Agree on the payment schedule, such as monthly or annually
• Specify if the payment will be made in advance or in arrears
• Agree on a payment method and make sure it is mentioned in the agreement
• When all of the above is complete, this step is completed and you can move on to the next step.

When the payment will be made

• Decide on a timeline for when the payment needs to be made
• Include any payment schedules or deadlines in the hosting agreement
• Make sure the payment terms are clear and understood by both the hosting provider and the client
• Ensure that both parties agree to the payment terms and that all the details are included in the hosting agreement
• Once all parties are in agreement, you can check this step off your list and move on to the next step.

What form the payment will take

• Decide what type of payment you will accept from the hosting provider
• Determine the payment frequency (e.g. monthly, annually, etc.)
• Include in the agreement the details of the payment form, including any payment fees
• Specify the payment method (e.g. PayPal, credit card, wire transfer, etc.)
• Include any terms or conditions of the payment in the agreement
• When all the details of the payment form have been established and agreed upon, you can check it off your list and move on to the next step.

Establishing the hosting provider’s responsibilities

• Read and understand the hosting provider’s Terms of Service and Service Level Agreement
• Make sure that the hosting provider understands their responsibility to provide the services listed in their agreement
• Ensure that the hosting provider will be available to provide support to the customer when needed
• Make sure that the hosting provider will provide regular updates, patching, and maintenance of the software used by the customer
• Make sure the hosting provider has the capacity to scale to meet the customer’s needs
• Have the hosting provider commit to any additional services requested by the customer
• Document the hosting provider’s responsibilities in the hosting agreement

When you have completed all of the above steps, you can move on to the next step.

What duties will the hosting provider have to fulfill

• List out the duties and obligations of the hosting provider, such as:
• Providing the customer with a certain amount of disk space, bandwidth, and other features
• Ensuring the security and reliability of the hosting service
• Maintaining backups of customer data
• Monitoring the server to ensure performance
• Once all of the hosting provider’s duties are listed out, move on to the next step: Outlining the customer’s rights and responsibilities.

Outlining the customer’s rights and responsibilities

• Identify the customer’s rights and responsibilities in the hosting agreement
• List the customer’s right to access and use the hosting service without interruption
• Detail the customer’s responsibility to provide accurate and up-to-date information to the hosting provider
• Set out the customer’s obligation to review and comply with the hosting agreement and all applicable laws
• Explain the customer’s responsibility to protect their account details and other confidential information
• Note the customer’s responsibility to use the hosting service only for lawful purposes

Once all the customer’s rights and responsibilities have been outlined in the hosting agreement, the step can be checked off and the next step can be proceeded to.

What the customer can expect from the hosting provider

• 24/7 customer service support
• Protecting customer data and ensuring its privacy
• Keeping the customer’s website secure and up-to-date with the latest security patches
• Ensuring the customer’s website is always available and accessible
• Meeting uptime and response time SLAs agreed upon in the hosting agreement
• Providing regular backups and ensuring the customer’s website is backed up regularly
• Keeping the customer’s website and hosting environment in compliance with any applicable laws
• Providing access to the customer’s hosting environment in a secure manner

Once these expectations have been outlined in the hosting agreement, the customer can check this step off their list and move on to the next step.

Any obligations the customer must meet

• Determine what the customer must do to maintain the hosting services, such as paying hosting fees on time
• Agree on the terms of access and usage of the hosting services, such as any limitations or restrictions
• Outline any customer obligations regarding the customer’s own content, such as compliance with all applicable laws
• Set expectations for customer’s support requests, such as response times and requirements
• Specify the obligations of the customer to use the service in a responsible manner and not to use the service for any illegal activities
• When all obligations are agreed upon and agreed to, you can check this off your list and move on to the next step.

Establishing privacy and security policies

• Outline what type of data the hosting provider is allowed to collect from the customer
• Establish the customer’s right to access their data
• Set forth the customer’s right to delete their data
• Describe how the hosting provider will protect the customer’s data
• Specify the customer’s right to dispute any data handling issues
• Describe the hosting provider’s responsibility to notify the customer of any data breaches
• Outline the hosting provider’s responsibility to comply with applicable laws and regulations
• You will know you have completed this step when you have outlined the privacy and security policies that the hosting provider and customer must abide by.

What measures the hosting provider will take to ensure the safety of customer data

• Create a policy outlining the specific measures that will be taken to secure and protect customer data
• Include details such as encryption, authentication, and access control
• Specify the measures that will be taken to secure physical, technical and administrative infrastructure
• Outline protocols for responding to incidents, including data breach notifications
• Once the policy is created, ensure that it is in compliance with all applicable laws and regulations
• When the policy is finalized, add it to the hosting agreement
• You will know that you have completed this step when you have a finalized policy that is ready to be added to the hosting agreement

Addressing dispute resolution

• Identify appropriate methods for dispute resolution such as arbitration, mediation, or negotiation
• Determine venue for dispute resolution, such as a court of law
• Establish a timeline for dispute resolution
• Outline the process that must be followed upon the initiation of a dispute
• Include language to ensure that any decision made through the dispute resolution process is legally binding
• Specify the type of damages that can be awarded in the event of a dispute

When you can check this off your list: This step is completed when you have included all necessary elements for dispute resolution in your hosting agreement.

How any disagreements or issues will be handled

• Determine the dispute resolution process that is most suitable for the agreement. Will the parties attempt to settle the dispute amicably using mediation or arbitration, or will they take the dispute to court?
• Map out the process of dispute resolution and the parties involved. Include a timeline for how the process will be handled, who will be responsible for the costs, and how the decision will be communicated to the parties.
• Specify the language that will be used to document the dispute resolution process in the agreement.
• Confirm that both parties are in agreement with the dispute resolution process.
• Once all parties have agreed to the dispute resolution process, it can be added to the hosting agreement.

You’ll know that you can check this step off your list and move on to the next step when you have all parties agreeing to the dispute resolution process and it has been added to the hosting agreement.

Establishing termination terms

• Identify the conditions under which either party may terminate the agreement such as breach of contract, failure to deliver services, etc.
• Specify the notice period for terminating the agreement and any other related conditions.
• Outline any penalties that may be incurred due to early termination of the agreement.
• Specify any remedies that may be available to the terminating party.
• Establish any procedures for returning any property (e.g. website hosting server) or funds (e.g. paid hosting fees) in the event of termination.
• When all termination terms have been agreed upon, include them in the hosting agreement.

How you’ll know when you can check this off your list and move on to the next step: Once you have identified the conditions under which either party may terminate the agreement, specified the notice period, outlined any penalties and remedies, and established any procedures for returning any property or funds, you have completed this step and can move on to the next step.

Conditions under which either party may terminate the agreement

• Specify the conditions under which either party may terminate the agreement:
• Include any specific conditions such as death, relocation, and/or breach of contract
• Specify the notice period that the terminating party must provide to the other party
• Ensure that the termination clause is clear and easy to understand
• Make sure that both parties agree to the termination terms before signing the agreement
• Once you have established the termination terms and both parties have agreed to them, you can check this off your list and move on to the next step.

Including any additional terms

• Gather all applicable laws, regulations and codes that need to be followed
• Review any other applicable industry standards and best practices
• Check if any other agreements or documents need to be referenced
• Consider any other specific terms that need to be included
• Discuss and agree upon any other terms or conditions with the other party
• Draft any additional terms, including any rules and regulations
• Ensure that all additional terms are clear, concise and in accordance with the law
• Have both parties sign and date the agreement

Once all the additional terms have been agreed upon and documented, you can move on to the next step.

Any other matters that should be included in the agreement

• Consider including any other matters that the parties should agree on, such as the payment method, the duration of the agreement, and the services to be provided.
• Ensure that all matters are clearly outlined and that all parties are in agreement.
• Once all matters have been included in the agreement, you can check this off your list and move on to the next step.

FAQ:

Q: Does creating a hosting agreement require a lawyer?

Asked by Jamie on April 14th, 2022.
A: Creating a hosting agreement does not require a lawyer, however it is highly recommended to seek legal advice before signing any kind of contract. A lawyer can provide legal advice and can help to ensure that the agreement accurately reflects the individual needs and circumstances of the parties involved.

Q: What are the main elements of a hosting agreement?

Asked by John on March 10th, 2022.
A: The main elements of a hosting agreement are typically the service provider’s offer to provide certain services, the customer’s acceptance of that offer, the fees associated with the services, the customer’s rights and responsibilities, the service provider’s duties and obligations, warranties and disclaimers, and any applicable laws or regulations. Additionally, a hosting agreement should include clauses regarding force majeure events (such as natural disasters or pandemics) and termination rights for both parties.

Q: What type of information should be included in a hosting agreement?

Asked by Victoria on June 18th, 2022.
A: A hosting agreement should include an overview of the services offered by the service provider, details about the customer’s rights and responsibilities (including acceptable use policies), information about fees and payment terms, warranties and disclaimers, termination rights for both parties, and any applicable laws or regulations. Additionally, it should include clauses regarding force majeure events (natural disasters or pandemics) and data protection requirements.

Q: Are there any specific regulations or laws that should be included in a hosting agreement?

Asked by Mark on August 19th, 2022.
A: Depending on where you are located, there may be specific regulations or laws that should be included in your hosting agreement. For example, many countries now have data protection regulations that must be adhered to when handling customers’ personal data. Additionally, you may need to include clauses regarding force majeure events such as natural disasters or pandemics. Additionally, if you are based in Europe there may be additional requirements from GDPR that need to be addressed in your contract.

Q: How do I ensure that my hosting agreement is enforceable?

Asked by Stephanie on September 20th, 2022.
A: A hosting agreement is only enforceable if it meets certain criteria. Firstly, all parties must have agreed to its terms and conditions (known as ‘meeting of minds’). Secondly, all parties must have had capacity to enter into the contract (i.e., they must be legally able to do so). Thirdly, all parties must have provided consideration (i.e., something exchanged for something else). Finally, all parties must have had intent to create legal relations (i.e., they must have intended the contract to be legally binding). It is important to consider these factors when drafting your hosting agreement to ensure its enforceability.

Q: What is an Acceptable Use Policy?

Asked by Joseph on December 24th, 2022.
A: An Acceptable Use Policy (AUP) is a set of rules outlining the appropriate use of an online service or network. An AUP typically includes prohibitions against certain types of activities such as spamming or illegal activities such as copyright infringement or hacking. It also outlines what types of content are allowed as well as what type of behaviour is expected from users while they are using the service or network. It’s important to include an AUP in your hosting agreement so that all parties are aware of their obligations when using the services provided by you or your company.

Q: How do I protect my intellectual property rights when creating a hosting agreement?

Asked by Sarah on January 2nd, 2022.
A: When creating a hosting agreement it is important to ensure that your intellectual property rights are protected. This can be done by including clauses in your contract which outline which party owns any intellectual property created as part of the services being provided under the contract (for example code or other creative works). Additionally it is important to include clauses outlining how intellectual property created during the course of providing services can be used after termination of the contract - for example specifying that such property should not be used for competing purposes without permission from both parties. Finally it is important to ensure that all parties acknowledge their obligations under copyright laws and other applicable laws when using such materials created during providing services under this contract.

Q: What happens if one party breaches their obligations under a hosting agreement?

Asked by Jacob on July 13th, 2022.
A: If one party breaches their obligations under a hosting agreement then this could result in serious consequences for both parties involved depending on the nature of the breach and what has been agreed upon in advance in the contract itself. Generally speaking if one party breaches their obligations then this could result in financial penalties being imposed on them by the other party as compensation for any losses incurred due to such breach - this would depend however on what has been agreed upon in advance within the contract itself in terms of remedies for breach of obligations under this contract. In some cases where breach has been particularly serious then one party may also have grounds for terminating this contract altogether with immediate effect without being liable for any further payments due under it - again this would depend on what has been agreed upon in advance in terms of remedies for breach within this contract itself

Example dispute

Suing Companies Based on Hosting Agreements

• Plaintiff can raise a lawsuit against the hosting company if they failed to provide the services that were laid out in the hosting agreement.
• Plaintiff must prove that the hosting company breached the agreement by not fulfilling their obligations or by failing to provide the services that were laid out in the agreement.
• Plaintiff can also raise a lawsuit if the hosting company did not protect their data or if the hosting company was negligent in its duties.
• Plaintiff can also sue if the hosting company violated the terms of the agreement or did not adequately provide the services that were laid out in the agreement.
• The plaintiff must prove that the hosting company breached the hosting agreement, and that this breach caused the plaintiff damages.
• The plaintiff must also prove that the hosting company was aware of the breach and failed to rectify it.
• The plaintiff must also prove that the hosting company failed to take reasonable steps to mitigate the damages caused by the breach.
• The plaintiff must also prove that the damages suffered were directly caused by the hosting company’s breach of the hosting agreement.
• If successful, the plaintiff can seek compensation for any damages suffered, including lost profits, costs associated with the breach, and legal fees.

Templates available (free to use)

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