As a new service method in delivering computing resources, cloud computing technology poses a challenge towards the application of existing laws that have a bearing on such technology. Considering this fact, this thesis firstly attempts to identify the legal problems associated with cloud computing technology. Secondly, this thesis will review the current practice on how providers generally govern their relationship with the customers in the cloud T&C, and concomitantly, how the cloud providers address legal issues associated with cloud computing technology. Finally, based on the review of the cloud contracts, this thesis attempts to draft a cloud computing contract which is compatible with prevailing laws. The contribution of this thesis lies in being one of the first attempts that comprehensively elaborates the legal considerations in drafting a cloud computing contract. For the policy maker, this thesis will assist the creation of a standard practice for cloud computing service. For the cloud provider, this thesis will provide guidance when designing cloud computing contracts which are compatible with prevailing laws. As for the cloud customer, this thesis will provide information regarding the various legal considerations which the customer must bear in mind before engaging in the cloud contract.