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ARTICLE · 24 SEPTEMBER 2020

Clouds Without Borders: The Dangers Of Non-localized Cloud Contracts

Torkin Manes LLP
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It's an exciting time in your organization. Your business has completed its due diligence and has found the perfect service provider, located in another jurisdiction.

CanadaPrivacy
Lisa R. Lifshitz
Lisa R. Lifshitz
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Careful scrutiny of cloud computing contracts will mitigate dangers of borderless agreements

It's an exciting time in your organization. Your business has completed its due diligence and has found the perfect service provider, located in another jurisdiction. Not to worry; the vendor assures you that they have a localized form of a simple three-page cloud agreement that has been tailored to meet Canadian legal requirements, and if you just sign the cover page and click through the terms the service can be up and running almost overnight. Easy peasy, right? Wrong!

As someone who spends much of her professional career reading technology contracts, it's fair to say that some foreign vendors remain challenged by the specific and unique requirements of doing business in Canada. While the larger, reputable providers have in the past several years considerably improved their standard cloud contracts, taking into account Canadian regulatory and other legal obligations

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