Software Development Contract

A software development agreement is a contract where one party agrees to develop a software application for another party.

The party providing the software services is generally called a ‘Developer’ or a ‘Service provider’ and the party requesting the software services is called the Client/Customer/ Company.

This contract will cater to a long term business arrangement between a Developer and a Client.

A software development contract is a contract in which the developer agrees to create certain software for the customer and to transfer the intellectual property rights in that software to the customer. It is an agreement which covers the key matters in detail.

A software development contract can be used when a client would like to hire a developer or a development company to create a software as per their requirement.

Contents to be included in Software Development Contract:

Project Plan:

Realistic time scales and deadlines for the software development project should be set out in the software development contract.

Client’s Responsibilities:

Any matters for which the client is responsible should be set out as your ability to perform your responsibilities depends upon the client fulfilling certain tasks.

Delivery Schedule:

The software development contract shall also mention the date by which the software shall get completed.

Payment Schedule:

Amount and time of the developer’s compensation to be mentioned in the software development contract.

Maintenance:

Programmers know that you will need support for the software after its completion. So the contract shall also specify details of maintenance.

Confidentiality:

Confidentiality is very much important and essential. Information relating to the Client shall be held in confidence by the developer and shall not be disclosed or used by the Developer. Also all the information relating to the Developer shall also be held in confidence by the Client.

Warranty Provisions:

The developer should give warranty for any defect in the project for free. Warranty provisions are included in most of the software development contracts.

Indemnity:

Software Development contract requires the Developer to compensate the Client for any loss or damage which results from a breach of the Contract.

Marketing:

Details whether the Developer is allowed to use the Software development as a part of its marketing and advertising campaigns.

Training:

Developer shall provide training to the client and its employees with respect to the use of the software. The Developer shall also provide manual to the buyer and to its employees so that they can be familiar with the software.

Termination:

Each party can terminate this contract upon breach by the other party of one or more terms or conditions.

(All Inclusive)