CLOUD COMPUTING AND LAW (II) – CLOUD COMPUTING CONTRACTS

In our previous article, we explained the cloud computing concept and the legal framework of it (Please see…). In this article, we will explain cloud computing contracts concluded between the cloud provider and the cloud user.

Form of the contract:

Cloud computing contracts are sui generis contracts that are not typically regulated by law. Although the validity of the cloud computing contract does not depend on any form requirement, it is essential to make a written contract between the cloud provider and the cloud user in order to prove rights arising from the contract. The contract may be signed with a wet-ink signature or a secure electronic one. However, in practice, it is encountered that cloud computing contracts are often made on digital platforms and on standard texts, without a wet-ink signature or a secure electronic one, by only clicking an “accept” button. Actually, this situation does not affect the validity of the contract but it brings up the discussion related to the validity of “general terms and conditions” under the obligations law and may affect the power of the contract, especially against cloud provider.

Subject of the contracts:

Cloud computing contracts basically involve the subject of storing some data ready to process. In order to ensure data security, the place where the data is submitted can not be fully addressed, it may only be expressed with the concept of “cloud”.

Data security:

Data security is an important issue that needs to be considered in cloud contracts. An absolute protection in terms of data security cannot be possible, since the location or device where data is stored in not exact and there in no geographical limitation in this regard. So, it is important that cloud providers provide maximum information and assurance regarding data security.

Terms of unfair competition:

Unfair competition clauses are generally included as standard in almost every commercial contract. The function of these clauses is to protect the benefits of all parties of the contract and to prevent unfair competition. Regarding unfair competition, the most important issue that may be encountered in a cloud computing contract is the risk of unauthorized use of data entrusted to the cloud provider.

In our next article, we will explain liabilities of parties and termination of the contract.

Hukuk Desteği (Legal Support)

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