The online business markets are flourishing as they are more convenient to use. You can now shop for virtually anything online. However, in order to put your product out there for the world to see, you need an attractive looking online shop.
The website, or your online shop, is usually made by a team of web developers. If you are looking to know complete details of a web development agreement this article is the place to be.
What Is a Web Development Agreement?
A web development agreement may sound simple but it is essential in an uncertain environment of the software industry where the demands of business change rapidly, the wishlist of clients overwhelms and the unforeseen blockades hinder the development process.
It governs the business relationship of an employer and an employee. The employer here, being the person who wants the website or the software made, and the employee is the web developer who shall make the website or the software artifact accordingly.
The web developer may be a single person as an independent contractor or a corporate entity. The agreement oversees the working term of the developer or development team with the employer who has hired the developer to work on the software product.
The agreement is set according to the context of the requirements. Also, it contains all the details of the working term. The details include various clauses that include all the aspects such as the timelines, budgets, quality control, ownership.
Key inclusions in the web development agreement:
- Scope of the project
- Website development
- Web hosting services (optional)
- Maintenance of the website
- Payment schedule and procedure
- Ownership of intellectual property
- Confidentiality and privacy
- Termination of the agreement
- Unavoidable circumstances (Major Force)
Moreover, it also covers details about the payments, the method of payments, and the timeline of payments. The scope of work is included as a separate document and signed by both parties. There are also clauses for conflict resolution and dispute management.
Why Do You Need a Web Development Agreement?
The web development agreement is usually needed by people and organizations that are looking to expand their businesses online. Online shipping and delivery services have made online shopping a go-to option for most people these days.
It is imperative now, more than ever, to have a well made and well-maintained business outlet on the internet. It is going to be the new age of businesses all over the world.
Any business that is looking to establish an online presence shall use the web development agreement. Some scenarios where businesses that need this agreement are as follows:
- Online clothes stores and online brand shops use this agreement to create their websites.
- This agreement is used by mega-corporations setting up their online websites.
- It is used by people who are just setting up small objective websites as well. These people use this agreement to form a pact with their web developers.
- Organizations that are looking to develop an online portal for their employees or customers.
- Any layman businessman or entrepreneur who is supposedly new to all these online stores and websites always appreciates a legal document such as this that makes the transaction tangible and easier to understand.
What Constitutes a Web Development Agreement?
A web development agreement is composed of several clauses. The basic features include:
- It sets up the situation as an employer-employee scenario. The responsibilities and duties of both parties are laid out accordingly.
- The agreement sets up the boundaries of the working relationship. It sets up a timeline, a budget, expectations of the employer from his website, targets for the web developer and all the other related aspects of setting up a website.
- This agreement also includes the additional clauses that might be needed in case of conflict resolutions and to make sure that both parties are in good communication with one another.
- The agreement also states quality control as an important aspect. It shall remain in usage until the web developer has made certain that the employer is satisfied with the work he is receiving.
- Another important part ofthe agreement states that the content or the portions of the website shall be under the web developer's ownership. The copyrights to the elements of the website shall actively be given to the owner after the website is completed.
- The web development agreement states that the client's information shall be held confidential at all times. No information shall be infringed by the web developer.
- Both parties hold each other in indemnity during their time together. Moreover, liability is not imposed on any party for their legal issues, however, as per mentioned in the agreement.
- The parties shall not be held liable in case the agreement is unfulfilled but because of natural disasters or any act deemed as divine intervention.
A web development agreement governs a very modern concept of web development and its legal aspects. It is a way of connecting the person asking for the creation of the website and the web developer. It binds them legally to ease the proceedings of the whole scenario.
Are you wondering where shall you find a web development agreement to get started? Where shall you find the legal guidance necessary to make a complete and simple web development agreement?
If you are in this conundrum, then Cocosign is the place to be. Cocosign is the best online provider of web development agreement templates and templates of other legal documents.
iles whether Client accepts or rejects the final files. If Client rejects the final files, Developer will correct any errors and again ask Client to accept or reject the corrected deliverable – which Client promises to do within seven (7) calendar days after Client receives the corrected deliverable. This process shall continue until Client accepts the deliverable or seven (7) calendar days have passed and Client has not accepted or rejected a deliverable (at which point it will be deemed accepted). Finally, Client agrees that Developer work on this project will be complete and the Agreement will end after Client has approved the final files.
9. Rights To The Client Content
Client promises that: (a) Developer owns the rights to use anything Client gives me (“Client Content”); and (b) using such Client Content does not violate the patent, copyright, trade secret or other property right of any person, firm or entity. Client grants Developer a nonexclusive, nontransferable license to use, reproduce, modify, display and publish the Client Content solely in connection with Developer’s work for Client under this Agreement and the limited promotional uses as allowed by this Agreement. Client also affirms and represents that this Agreement does not conflict with any other contract, agreement or understanding to which Client is a party.
10. Rights Before Payment In Full
Client understands and agrees that until Client pays Developer in full, Developer owns full rights to everything Developer creates for Client under this Agreement. If Client does not pay Developer in full, Client agrees that Developer can complete, exhibit, use and sell the software at Developers sole and absolute discretion (except that Developer will not be able to use Client Content in such work).
11. Rights After Payment Made In Full.
After Client pays Developer in full, Developer assigns to Client Developers right, title and interest in the copyrights for the final software that Developer creates for Client under this Agreement – contained in the final files that Developer will send to Client for approval. Client agrees that Developer will retain and Client will not receive any right, title or interest to the preliminary work or preliminary designs that are included with the work Developer creates for Client. If Client needs additional documentation, Developer will sign any further documents reasonably necessary to make sure that the rights Developer is giving Client under this Agreement are properly assigned to Client. Client agrees that Developer may use Client name/company name and trademarks as a reference in Developers promotional materials. Client also agrees that Developer may include, when referencing Developer’s work for Client, a general description of the work under this Agreement.
12. Right To Make Changes.
Developer agrees that after Client pays Developer in full, Client may make any changes or additions to the software Developer creates for Client under this Agreement, which Client in Client’s discretion may consider necessary, and Client may engage others to make any such changes or additions, without further payments to Developer. Client agrees that if Client asks Developer to make changes or additions to the software after Client approves the final files, Client and Developer will negoti
ate a separate additional payment for Developer’s time to make such changes.
13. Rights To Know-How
Developer may incorporate into the software Developer creates for Client various pre-existing development tools, routines, subroutines, programs, data or materials (Know-How). Client agrees that Developer retain all rights, title and interest, including all copyright, patent, and trade secret rights to that Know-How. Developer agrees that after Client pays Developer in full, Client will receive a nonexclusive, perpetual, worldwide license to use the Know-How in the software that Developer created for Client under this Agreement. However, Client shall not resell or make use of that Know-How in any other manner other than in connection with the software Client receives under this Agreement.
Developer promises that to the best of Developer’s knowledge, the software will not contain any virus, worm, trap door, back door, trojan horse, timer or clock that would erase data or programming or otherwise cause the software to become inoperable or incapable of being used.
15. Limitations of Remedies
Developer shall not, under any circumstances, be liable to Client for consequential, indirect, incidental, special, punitive, or exemplary damages or losses arising out of or related to this agreement, even if Developer is advised of the likelihood of such damages occurring. Developer’s cumulative liability for any damages arising out of or in any manner related to this agreement (including, but not limited to, claims for breach of contract, breach of warranty, negligence, strict liability, or tort, shall be limited to the amount of the fee paid by Client to Developer under this agreement.
16. Entire Agreement
This Agreement constitutes the complete and exclusive agreement between Client and Developer concerning the work on this project, and it supersedes all other prior agreements, proposals, and representations, whether stated orally or in writing. Developer and Client can modify this agreement in writing, if both Client and Developer sign that modification.
17. Independent Contractor
Client agrees that Developer is an independent contractor and not Client’s employee. Although Client will provide general direction to Developer, Developer will determine, in Developer’s sole discretion, the manner and ways in which Developer will create the software for Client. The work that Developer creates for Client under this Agreement will not be deemed a “work-for-hire,” as that term is defined under U.S. Copyright Law. Whatever rights Developer grants Client are contained in this Agreement.
Scope of work described in detail