Software Development Agreement
A Software Development Agreement sets out the terms under which a developer creates and transfers customised software to a client.
4.3 (6 reviews)
Last updated December 18, 2024
Under 15 minutes
Suitable for Australia
Written by
Edwin Montoya Zorrilla
Reviewed by
Damin Murdock
Document Overview
A Software Development Agreement is a legally binding contract between a software development company and a customer. This document sets out the terms under which a developer creates and transfers customised software to a client. This agreement is suitable for specific or customised software development between a developer and customer.
Software development agreements are essential for ensuring that both parties have a clear understanding of the project's timeline, goals, and expectations. They provide a mutually beneficial agreement between the software development company and the customer, and ensure that the customer is aware of their rights and the company's responsibilities.
By having a software development agreement, the customer can be sure of the quality of the product they are receiving and the timeline in which it will be completed. It also outlines the payment terms and any warranties or guarantees that are included in the agreement, so that there are no misunderstandings.
The software development agreement also outlines who has ownership rights to the software, and any restrictions on its use. This is important to ensure that the customer does not have any disputes with the company regarding the rights to the software.
Finally, the agreement outlines the liabilities and responsibilities of each party involved in the agreement. This ensures that both parties understand the risks involved and that the customer is aware of their rights and the company's responsibilities.
Having a software development agreement is important because it ensures that both parties have a clear understanding of the project and the terms of the agreement. It also ensures that the customer is aware of their rights and the company's responsibilities, and provides a legally binding contract that is enforceable by law.
The Legal Risk Score of a Software Development Agreement Template
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.
Software Development Agreement Checklist
Complete your free Software Development Agreement with our checklist
Ensure Proper Execution
Ensure that the agreement is signed by authorized representatives of both parties and witnessed, as stipulated in the execution clause.
Monitor Compliance with Timelines
Regularly check that all development phases are completed on schedule as outlined in the agreement to avoid delays and potential penalties.
Verify Payment Terms
Confirm that all payments are made according to the agreed schedule and conditions, especially following the completion of development phases and acceptance testing.
Conduct Thorough Acceptance Testing
Perform detailed acceptance testing as described in the agreement to ensure the software meets all specified requirements before final acceptance.
Use this Software Development Agreement if:
- You want to clearly establish the rights and responsibilities of the software developer and the customer.
- You want to guarantee that the software created adheres to the requirements of the customer.
- You want to ensure the software developer is not infringing on any third party’s intellectual property rights.
- You want to protect the intellectual property being developed for this software application.
What does this Software Development Agreement cover?
- Background
- Development of software
- Development fees
- Installation of software
- Acceptance testing
- Termination
- Liability
- Implied terms and consumer guarantees
- Confidentiality
- Privacy
- Copyright indemnity
Further information
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