Software Development Agreement

A Software Development Agreement sets out the terms under which a developer creates and transfers customised software to a client.

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Last updated September 17, 2025

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Suitable for Australia

Software Development Agreement

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What is a software development agreement?

A software development agreement is a contract that sets out the terms under which a developer creates and transfers customised software to a client.
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When should you use a software development agreement?

You should use this agreement when engaging a developer to create bespoke software, ensuring both parties understand their rights, responsibilities, and project expectations.
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What should be in a software development agreement?

It should include project scope, development timeline, payment terms, intellectual property rights, acceptance testing, warranties, and liability provisions.
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Frequently asked questions

Who owns the intellectual property in the developed software?

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Does this agreement cover software installation and ongoing support?

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What protections does the agreement offer against project delays?

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How are payments structured under this agreement?

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What happens if the software does not meet requirements?

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Are there limitations to the warranties provided?

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What steps should I take before signing?

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View Sample Software Development Agreement

Software Development Agreement
risk level indicator at Low level

The Legal Risk Score of a Software Development Agreement Template is Low

Our legal team have marked this document as low risk considering:

  • The document stipulates that the supplier is not required to install the software or provide support for its installation, which could lead to additional costs or complications for the user if they lack the technical expertise to handle installation themselves.
  • Changes in the project timeline or software specifications may lead to additional charges or amendments to the development schedule, potentially increasing the overall cost and duration of the project.
  • The software may not be entirely free of errors even after acceptance, and the supplier's limited warranty may not cover all potential issues that arise, leaving the user responsible for any unaddressed defects.

Meet Our Users

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By Zachary Swan|Mar 16, 2017

What Legal Documents Do I Need to Develop Software?

Secure your software with the right legal protection. Find out what legal documents you need when developing software.

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Are you thinking about starting an IT business? Not sure whether you need a service agreement? Learn about the importance of a SA in the IT industry!

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Need to update your service agreement? Not sure where to begin? Read on to learn the essential terms that should be included in every service agreement!

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By Anjaly Tessa Saji|Jul 24, 2019

What Should I Include In My Scope Of Work (SOW)?

Is your business undertaking a large collaborative project? A Scope of Work (SOW) will assist you in ensuring the project runs smoothly.

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By Edwin Montoya Zorrilla|Dec 1, 2025

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Discover the essential legal documents for freelancers in Australia. Learn how contracts, NDAs, and IP agreements can protect your business and streamline your freelance work.

What Does a Services Agreement Cover?
By Shrishti Shah|Sep 30, 2019

What Does a Services Agreement Cover?

A Services Agreement governs the relationship between the supplier and the client. Read on to find out what terms need to be included in this document.

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