Hosting Contract Q&A

What happens under the standard web hosting agreement where a customer goes over bandwidth or other resource limits?

A simple utilisation clause is included: "The Website’s utilisation of Resources must not exceed the limits set out in the Schedule. If the Website’s utilisation of Resources exceeds those limits, the parties will endeavour to agree a variation to this Agreement. If the parties cannot agree such a variation within a reasonable period (being not more than 30 days) following notice from the Company to the Customer requesting such variation, and Resource utilisation continues to exceed those limits, the Customer will be deemed to be in material breach of this Agreement for the purposes of Clause 13."

We're a web design agency. We don't have our own servers for hosting customer sites, but resell the hosting services of a major provider. Can we use this document?

Yes, but you will need to ensure that it is "back to back" with the terms and conditions of the ultimate service provider. In other words, you should not make any commitments to your clients that the service provider does not make to you, and you should avoid taking on liabilities to your clients that the service provider does not take on with respect to you.

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