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Software Development Agreement is an agreement whereby the developer agrees to design, develop, sell and maintain the software for the client. The developer agrees to create the software based on the specifications and the timeline specified by the buyer. Generally, software specifications and the timeline/milestones are added as a schedule to the agreement.
This agreement is entered between the software developer and the buyer/client buying the software. It is drafted in favour of the Developer.
This template for the Software Development Agreement outlines:
1. Scope of Work
2. Payment Terms
3. Acceptance Testing
4. Warranty, Indemnity and Limitation of Liability
5. Intellectual Property Rights
7. Obligations of the buyer
8. Obligations of the developer
It is important to have a Software Development Agreement as it outlines the software specifications, timeline and the amount of payment. It defines the expectations of both parties and provides protection in case of a dispute.
This document should be carefully read by the buyer and the software developer.
Both parties should sign and return a copy, and once signed, both parties should get a copy. To avoid future disputes, both parties may wish to have their signature witnessed.
The software specifications, payment amount, milestone and term of the agreement should be clearly specified in the agreement.