An article by Ryang Huang, Editor at ZDNet's Asia/Singapore, conveys that there will be both practical and commercial risks when choosing a cloud service which can be mitigated by focusing on the service contract. He also mentioned that the service contract must enable organizations to comply with their own obligations. Also, the service contract should include a plan detailing the steps to be taken on exit and how data will be extracted from the vendor. As cloud services may involve the use of software and other intellectual property rights under a license, organizations could be dragged into a legal dispute in the event of third party claims of infringement against the cloud service provider.
To gather better insights in this aspect follow http://www.zdnet.com/how-to-manage-contractual-risks-in-cloud-computing-7000027568/