Suspension clauses are becoming more and more common in SaaS contracts.
A suspension clause allows the SaaS supplier to suspend the supply of the services if the customer is not paying on time or is otherwise (in the supplier's view) in breach of contract.
If you're the SaaS provider, then a suspension clause can be useful. It gives you a lot of leverage if things aren't going your way.
But if you're the buyer, it's exactly the other way around.
If there's no suspension clause, the supplier's only remedy is to terminate the contract. If the supplier terminates the contract, it's lost the revenue.
Loss of revenue is something that every supplier wants to avoid, which means that the right to terminate has a balancing element built into it. That balancing element gives the buyer protection from unreasonable suppliers.
But if the supplier has the right to suspend, that protection has gone.
Termination cuts both ways. Suspension only cuts one way.
10th November 2026