Software Development Agreement 4
Software Development Agreement 1
Software Development Agreement 2
Software Development Agreement 3
Software Development Agreement 4
Software Development Agreement 1

Software Development Agreement

    A contract between software developers and their clients is known as a "software development agreement". Our software development agreement template is a well-versed document to be signed with the software developers. Through our agreement template, one party (the Developer) undertakes to build software for another party (the Client). Our template will help you in providing suggestions on how to handle issues that arise. This agreement template is a complete legal document prepared for you that serves as a project road map. Save your time and modify this document according to your project.

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Software Development Agreement
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Software Development Agreement

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Are you confused about what precisely a software development agreement is? Do not worry! we have the solution for you. You can get details regarding what a software Development Agreement is, how it works and why it is required.

A software development agreement is required when software needs to be developed and created. It is necessary when two different parties strike a deal about the creation of software. Both parties have to sign the agreement before further proceedings can begin.

Additionally, you can also get a free software development agreement template for download and reference.

What Is a Software Development Agreement?

A software development agreement is an agreement that is done between a software developer and a client.

The agreement lays down the terms and clauses based on which the developer transfers or sells the software to the client, and the client can use the software to then incorporate for his uses.

It encloses in itself an appendix, a rider agreement, and substantially all the conditions and commitments upon which both the parties had mutually agreed.

The deal occurs between a freelancing software designer and a potential client willing to purchase the software. The agreement ensures and specifies the ownership rights of software and its code.

Usually, the developer is allowed to own rights to the software code, even after transferring it over to the client. Furthermore, based on the conditions of the agreement, the developer may or may not own the software that he had created.

Whatever the clauses are, they are mutually agreed upon by both parties. It is essential during such transactions. It may so happen that the client disagrees to pay the exact amount, which was decided previously. In such a situation, the agreement stands as proof.

Specific clauses in the agreement also serve licensing purposes. The client may ask the developer to incorporate specific software changes after it is done and delivered.

In such cases, the agreement ensures that the developer is paid extra for his time dedicated to making those additional changes. Before attesting to software development agreements, both parties should carefully read the clauses.

The agreement is beneficial for a certain number of reasons. They minimize losses and guarantee protection and proper completion of work. They serve as an agent of assurance to both the parties.

Different Types of Software Development Agreement

Depending upon the contents and terms of agreements, the software development agreement can be of different kinds. Below, we have stated the different types of Software Development Agreements.

Time and Materials

Under such an agreement, the client pays the developer based on hours worked. Certain advantages can be attributed to this type of agreement.

  • Firstly, it is easy and straightforward and to begin.
  • There is clarity as well because the payment structure is clear and proper.
  • The agreement is flexible; the clauses can be altered and changed as per requirements whenever necessary.

The time and material software development agreement requires more significant dedication from both parties; they need to stay more involved in the process.

Fixed Bid

Under a fixed budget agreement, the goals and output required are fixed at the beginning. The client attaches a fixed budget on the bond within which the developer has to work; the course of the work is pre-planned. This type of agreement helps a great deal for long-term projects.

  • The developer gets to know what price on which he is working. Thus there is an assurance.
  • The client knows when they will receive the completed software. Deadlines are fixed and strict.
  • Since everything is pre-planned, it is easier to track the course of the work and its status of progress.
  • This bond is not flexible. The clauses cannot be changed.
  • Everything is determined on a fundamental basis.

These were the two basic kinds of software development agreements. The primary difference between the two is that the client exercises more autonomy on the project under the fixed bid bond.

On the other hand, under the time and material bond, the developer applies greater independence to the project.

What Are Included in a Software Development Agreement?

Various clauses and sections are included in a software development agreement. You can draw a bond yourself, or you can refer to a lawyer. To know what the different conditions are, you can take the help of a software development agreement.

  • Details: It includes the name of the developer and client, the address of the developer and client and effective date.
  • Developer's Duties: It includes the duties that the developer is legally bound to complete, specifies the final delivery date of the software, and indicates the number of hours for which the developer must work, the time frame of the product.
  • Delivery: In case the software does not fulfill all the requirements of the client. The client may send it back to the developer. The client should inform the developer of the changes to be made in writing.
  • Intellectual Property Rights: This cause lays down the specifications of copyright. The client does not own the entire property of the software. It states in detail what the client owns part of the software and which by the developer.
  • Change in Specifications: Declares in detail the terms and conditions under which the client or the developer can change the required specifications.
  • Confidentiality: The developer is bound by the agreement to not reveal to any third party source or organization about the software and its development. If the developer reveals details about the client and the business proceedings, necessary measures shall be taken.
  • Developer Warranties: The production and development of the software should not breach any other agreement with any other organization. The software should not violate intellectual property rights.
  • Indemnification: The developer should protect the client from any kind of lawsuit or court proceedings related to the software and its development.
  • Applicable law and jurisdiction: The terms of the agreement shall be governed and directed as per the laws of the State and exclusive jurisdiction of the state and federal courts.
  • Signatures
Develop software with our Software Development Agreement template

Our software development agreement template will keep disputes at bay because it is well-drafted by legal experts. Alter the terms and conditions to transfer some or all the ownership rights.

You can get an editable copy of the template here.

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Conclusion

To conclude, these are all you needed to know about the software development agreement, its uses, and its requirements and advantages. At CocoSign, you can get more details about the matter. With years of experience, CocoSign offers reliable software development agreements.

You can also access software development agreement templates on our official websites. Apart from this, various other different agreement templates are available for download.

DOCUMENT PREVIEW

SOFTWARE DEVELOPMENT AGREEMENT

 

THIS AGREEMENT (“Agreement”) is entered into on ________, between ___________ (“Developer”), with its principal place of business located at ___________________________  , and _________________ (“Client”), with its principal place of business located at __________________________________________ and shall be effective as of ________ (the “Effective Date”).

 

WHEREAS, Developer is engaged in the business of software development,

 

WHEREAS, Client wishes to utilize the services of Developer in connection with the development of certain software identified as _____________________ (the “Software”).

 

NOW, THEREFORE, Developer and Client agree as follows:

 

  1. Scope of Services

 

Developer will perform the services described in Exhibit A (the “Work”), in order to develop and implement the Software according to specifications and completion time set forth therein. Client will cooperate with Developer’s reasonable requests for information and data necessary for the completion of the Work.

 

  1. Term and Termination

 

Unless terminated as provided herein, this Agreement shall commence on the Effective Date and will extend to and terminate upon completion of Developer’s work. Client may terminate this agreement without cause upon thirty (30) days written notice. Either party may terminate this Agreement for material breach, provided, however, that the terminating party has given the other party at least twenty-one (21) days written notice of and the opportunity to cure the breach.

 

  1. Price and Payment Terms

 

Client will pay Developer for the Work at the rate of $___ per hour of services rendered by Developer during the term of this agreement. Developer shall invoice Client monthly for services performed during the preceding month. Client shall deliver funds to Developer within seven (7) days of receipt of an invoice from Developer. In the event of termination without cause, Client agrees to pay Developer for all of Developer’s Work performed up to the date of termination.

 

  1. Ownership of Intellectual Property

 

To the extent that Developer has received payment of compensation as provided in this Agreement, Developer hereby assigns to Client all rights, title, and interest in any intellectual property created of developed by Developer for Client under this Agreement.

  1. Confidential Information

 

 

All information relating to Client that is known to be confidential or proprietary, or which is clearly marked as such, will be held in confidence by Developer and will not be disclosed or used by Developer except to the extent that such disclosure or use is reasonably necessary to the performance of Developer’s Work. All information relating to Developer that is known to be confidential or proprietary, or which is clearly marked as such, will be held in confidence by Client and will not be disclosed or used by Client except to the extent that such disclosure or use is reasonably necessary to the performance of Client’s duties and obligations under this Agreement. The obligations of confidentiality will extend for a period of ________ after the termination of this Agreement, but will not apply with respect to information that is independently developed by the parties, lawfully becomes a part of the public domain, or of which the parties gained knowledge or possession free of any confidentiality obligation.

 

  1. Warranty and Disclaimer

 

Developer warrants the Developer’s Work will be performed in a workmanlike manner and in conformity with generally prevailing industry standards. THIS WARRANTY IS EXCLUSIVE AND IS IN LIEU OF ALL OTHER WARRANTIES, WHETHER EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY ORAL OR WRITTEN REPRESENTATIONS, PROPOSALS OR STATEMENTS MADE ON OR PRIOR TO THE EFFECTIVE DATE OF THIS AGREEMENT.

 

  1. Limitation of Liability

 

NEITHER PARTY TO THIS AGREEMENT SHALL BE LIABLE TO ANY OTHER PARTY FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES (INCLUDING DAMAGES FOR LOSS OF BUSINESS, PROFITS. DATA OR ANY OTHER LOSS) INCURRED OR SUFFERED BY THE OTHER ARISING AS A RESULT OF OR RELATED TO THE PERFORMANCE OF DEVELOPER’S WORK, WHETHER IN CONTRACT, TORT OR OTHERWISE, EVEN IT HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGES.

 

 

  1. Relation of Parties

 

The performance by Developer of its duties and obligations under this Agreement will be that of an independent contractor, and nothing in this agreement will create or imply an agency relationship between Developer and Client.

 

  1. Arbitration and Mediation

 

Except as described in Paragraph 2, if any dispute arises under the terms of this

Agreement, the parties agree to select a mutually agreeable neutral third party to help them mediate it. If the mediation is unsuccessful, the parties agree that the dispute shall be decided by binding arbitration under the rules issued by the American Arbitration Association. The decision of the arbitrator shall be final. Costs and fees (other than attorneys fees) associated with the mediation or arbitration shall be shared equally by the parties. Each party shall be responsible for its attorneys’ fees associated with arbitration.

 

  1.  Miscellaneous

 

This Agreement shall be construed pursuant to the laws of the Commonwealth of Massachusetts, excluding any choice of law rules. This Agreement may not be modified or amended except by written notice, which is signed by authorized representatives of each of the parties. A party’s failure to exercise, or delay in exercising any rights hereunder will not be deemed to be a waiver of such right. If any provision of this Agreement is held invalid or otherwise unenforceable, the enforceability of the remaining provisions of this Agreement will not be impaired thereby.

 

 

IN WITNESS WHEREOF, the parties have executed this Agreement effective the date first stated above.

 

DEVELOPER:      CLIENT:

 

__________ _________________   _____________________________

Business name      Business name

 

By: _________________________   By: __________________________

 Signature      Signature

 

Name: _______________________   Name:  _______________________

 

Title: ________________________   Title: _________________________

 

Telephone: ____________________   Telephone: (_____) _____________

 

E-mail address: _____________________  E-mail address: _________________

 

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