Software Development Agreement Contract
Software Development Agreement Contract
(The capitalized terms used in this agreement, in addition to those above, are defined in
section [DEFINITIONS].)
2.1. define the specifications of the [DELIVERABLE] and the schedule for its
development and delivery (the "Specifications"), and
4. Make [DELIVERABLE] Available for Download. On the later of the Effective Date
and [PARTY B]'s first payment for the [DELIVERABLE], [PARTY A] shall make the
[DELIVERABLE] available to [PARTY B] in an electronic, downloadable format on
[PARTY A]'s website, at [INSERT URL OF WEBSITE].
5.1. Inspection Period. [PARTY B] will have [INSPECTION PERIOD] Business Days'
after [PARTY A] delivers the [DELIVERABLE] to inspect and test the [DELIVERABLE]
to ensure it meets the Acceptance Criteria (the "Inspection Period").
5.2. Acceptance. If in [PARTY B]'s opinion the [DELIVERABLE] meets the Acceptance
Criteria, [PARTY B] shall accept the [DELIVERABLE] and notify [PARTY A] that it is
accepting the [DELIVERABLE].
(b) if during the Inspection Period, [PARTY B] sells or attempts to sell, runs, or
otherwise uses the [DELIVERABLE] beyond what is necessary for inspection and
testing and in a way a reasonable person would consider consider consistent with
[PARTY B] having accepting ownership of the [DELIVERABLE] from [PARTY A].
5.4. Rejection. If in [PARTY B]'s opinion, the [DELIVERABLE] fails in a material way
to meet the Acceptance Criteria, [PARTY B] may reject the [DELIVERABLE] by
delivering to [PARTY A] a written list detailing each failure to satisfy the Acceptance
Criteria.
5.6. Continued Failure to Cure. If in [PARTY B]'s opinion, [PARTY A]'s corrections fail
to satisfy the Acceptance Criteria [NUMBER OF OPPORTUNITIES TO CURE] times,
[PARTY B] may terminate this agreement.
6.1. Training. [PARTY A] shall, at [PARTY A]'s expense, provide [PARTY B]'s
employees with the initial training services necessary and desirable to operate the
Software, as further described in the [ATTACHMENT], attached to this agreement, at
[PARTY A]'s offices and on days and times the parties agree to in writing.
6.2. Support
(a) Initial Support. For the [12] month period beginning on the Effective Date, and at
[PARTY A]'s own expense, [PARTY A] shall provide [PARTY B] with
(i) telephone or electronic support during [PARTY A]'s normal business hours in
order to help [PARTY B] locate and correct problems with the Software, and
(ii) internet-based support system generally available seven days a week, twenty-four
hours a day.
(b) Renewed Support. After the initial [12] month support period, [PARTY B] may
elect to renew [PARTY A]'s support services under this paragraph [SUPPORT] for
additional [12] month periods, at [PARTY A]'s then-current service rates.
7. Changes to Services
7.2. Additional Time or Expense. If the proposed change will require a delay in delivery
of the [DELIVERABLE] or would result in additional expense,
(a) [PARTY A] shall submit a proposal for the requested changes, detailing any added
time and expense, and
(ii) require [PARYT A] to provide the [DELIVERABLE] with the proposed change,
subject to the delay and additional expense.
7.3. Termination. If [PARTY A] cannot, or chooses not to accept the change order, then
[PARTY B] may terminate this agreement and pay [PARTY A] any amounts it already
owes under this agreement.
7.4. Changes Made in Writing. If the parties agree to make changes to the
[DELIVERABLE], the parties shall make those changes in writing, signed by each party.
Account Number:
Routing Number:
10. Taxes. Payment amounts under this agreement do not include Taxes, and [PARTY B]
shall pay all Taxes applicable to payments between the parties under this agreement.
11. Interest on Late Payments. Any amount not paid when due will bear interest from the
due date until paid at a rate equal to [1]% per month ([12.68]% annually) or the maximum
allowed by Law, whichever is less.
12. Term. This agreement begins on [the Effective Date] and will continue until
[CONDITION / EVENT / FULFILLMENT OF ORDER / COMPLETION OF
SERVICES], unless terminated earlier (the "Term").
13.1. Limited Media Warranty. The Developer warrants that, for a period of [MEDIA
WARRANTY PERIOD] following delivery of the Software, the media upon which the
Software is delivered will be free from defects in materials and workmanship under normal
use.[ The Developer's sole obligation in this regard will be to provide the Customer with a
performing copy of the Software within a reasonable time following the Customer's
written notice to the Developer of the defect.]
13.3. Limited Performance Warranty. The Developer warrants that, for a period of
[PERFORMANCE WARRANTY PERIOD] starting on the date of [delivery OR
installation] of the Software, the Software will perform substantially in accordance with
the functional specifications set forth in the documentation, but only if the Software is
installed and operated in accordance with the Developer's documentation and other
instructions.
13.4. Disclaimer. [The Developer does not warrant that the functions contained in the
Software will meet the Licensee's requirements or operate in the combination desired by
the Licensee, or that the Software's operation will be uninterrupted or error-free. ]The
Developer does not make and will not be liable for any warranties other than those
expressly included in this agreement.
15. No Open Source. [PARTY A] hereby warrants that the [DELIVERABLE] does not
contain any software, hardware, or other materials, components, or parts licensed under an
open source license.
16. No Warranty
16.1. "As-Is". Unless otherwise listed in this agreement, the [DELIVERABLE] is
provided "as is," with all faults, defects, bugs, and errors.
(a) [PARTY A] does not make any warranty regarding the [DELIVERABLE], which
includes that
(b) [PARTY A] hereby disclaims to the [fullest] extent authorized by Law any and all
[other] warranties, whether express or implied, including any implied warranties of
[title, non-infringement, quiet enjoyment, integration,] merchantability or fitness for
a particular purpose.
17. Exclusions from Warranty. [PARTY A]'s warranties under this agreement exclude
any claims by [PARTY B] based on defects in the [DELIVERABLE] caused by [PARTY
B], or by third parties beyond [PARTY A]'s control.
18. Work Made for Hire. [PARTY A] hereby acknowledges the parties' mutual intent
that the [DELIVERABLE] is a "work for hire" within the meaning of the Copyright Act of
1976, as amended, and be [PARTY B]'s exclusive property.
20. Confidentiality Obligations. The parties shall continue to be bound by the terms of
the non-disclosure agreement between the parties, dated [DATE] and attached to this
agreement on [ATTACHMENT].
21. Insurance
21.2. Proof of Insurance. At [PARTY B]'s request, [PARTY A] shall provide [PARTY B]
with certificates or other acceptable proof of its insurance, describing the coverage of its
insurance, and notice of any material change to its insurance.
(b) Certificate of Insurance. [PARTY A] shall have its insurer send a certificate to
[PARTY B], proving [PARTY B] has been added to [PARTY A]'s policy, and
confirming that the insurer will give [PARTY B] [30] Business Days written notice
before any proposed cancelation, modification, or reduction in coverage of [PARTY
A]'s policy.
21.5. No Contribution from [PARTY A]. Any insurance carried by [PARTY B] will not
be subject to contribution.
22.2. Escrow of Source Code. Within [ESCROW DELIVERY DAYS] Business Days'
after delivering the object code of the [DELIVERABLE] to [PARTY B], [PARTY A] shall
deposit one copy, on [PARTY B]'s behalf, of the [DELIVERABLE] in source code with
an escrow agent specializing in software escrows who the parties agree on in writing.
22.4. Upkeep of Escrow Account. [PARTY B] shall pay all fees necessary to establish
and maintain the escrow.
(b) fails to fulfill its obligations to maintain the [DELIVERABLE] as provided in this
agreement,
(c) becomes insolvent or admits insolvency or a general inability to pay its debts as they
become due,
(d) files a petition for protection under the U.S. Bankruptcy Code, or an involuntary
petition is filed against it and is not dismissed within 60 Business Days, or
23. Termination
23.1. Termination on Notice. Either party may terminate this agreement for any reason on
[TERMINATION NOTICE BUSINESS DAYS] Business Days’ notice to the other party.
23.2. Termination for Material Breach. Each party may terminate this agreement with
immediate effect by delivering notice of the termination to the other party, if
(a) the other party fails to perform, has made or makes any inaccuracy in, or otherwise
materially breaches, any of its obligations, covenants, or representations, and
23.3. Termination for Insolvency. If either party becomes insolvent, bankrupt, or enters
receivership, dissolution, or liquidation, the other party may terminate this agreement with
immediate effect.
24.2. Payment Obligations. Even after termination or expiration of this agreement, each
party shall
(a) pay any amounts it owes to the other party, including payment obligations for
services already rendered, work already performed, goods already delivered, or
expenses already incurred, and
(b) refund any payments received but not yet earned, including payments for services
not rendered, work not performed, or goods not delivered, expenses forwarded.
25.1. return to [PARTY A] all originals of the information, documents, equipment, files,
and other property, including Intellectual Property, it received from [PARTY A],
25.2. destroy all copies of [PARTY A]'s of the information, documents, equipment, files,
and other property, including Intellectual Property, it made, and
25.3. on [PARTY A]'s request, certify to [PARTY A] in writing that it destroyed all these
copies.
26. Indemnification
(b) arising out of a claim that the [DELIVERABLE] infringes the third party's
Intellectual Property rights.
26.2. Mutual Indemnification. Each party (as an indemnifying party) shall indemnify
the other (as an indemnified party) against all losses arising out of any proceeding
(b) arising out of the indemnifying party's willful misconduct or gross negligence.
(a) Notice Requirement. Before bringing a claim for indemnification, the indemnified
party shall
(ii) deliver to the indemnifying party all legal pleadings and other documents
reasonably necessary to indemnify or defend the indemnifiable proceeding.
(b) Failure to Notify. If the indemnified party fails to notify the indemnifying party of
the indemnifiable proceeding, the indemnifying will be relieved of its indemnification
obligations to the extent it was prejudiced by the indemnified party's failure.
26.4. Exclusive Remedy. The parties' right to indemnification is the exclusive remedy
available in connection with the indemnifiable proceedings described in this section
[INDEMNIFICATION].
27. Limitation on Liability. Neither party will be liable for breach-of-contract damages
that are remote or speculative, or that the breaching party could not reasonably have
foreseen on entry into this agreement.
28. Definitions
"Business Day" means a day other than a Saturday, a Sunday, or any other day on which
the principal banks located in New York, New York are not open for business.
(a) any federal, state, local, or foreign government, and any political subdivision of any of
them,
"Intellectual Property" means any and all of the following in any jurisdiction throughout
the world
(a) trademarks and service marks, including all applications and registrations, and the
goodwill connected with the use of and symbolized by the foregoing,
(b) copyrights, including all applications and registrations related to the foregoing,
(f) other intellectual property and related proprietary rights, interests and protections
(including all rights to sue and recover and retain damages, costs and attorneys' fees for
past, present, and future infringement, and any other rights relating to any of the
foregoing).
"Law" means
(a) any law (including the common law), statute, bylaw, rule, regulation, order, ordinance,
treaty, decree, judgment, and
(b) any official directive, protocol, code, guideline, notice, approval, order, policy, or other
requirement of any Governmental Authority having the force of law.
"Person" includes
"Taxes" includes all taxes, assessments, charges, duties, fees, levies, and other charges of a
Governmental Authority, including income, franchise, capital stock, real property, personal
property, tangible, withholding, employment, payroll, social security, social contribution,
unemployment compensation, disability, transfer, sales, use, excise, gross receipts, value-
added and all other taxes of any kind for which a party may have any liability imposed by
any Governmental Authority, whether disputed or not, any related charges, interest or
penalties imposed by any Governmental Authority, and any liability for any other person
as a transferee or successor by Law, contract or otherwise.
29.1. Entire Agreement. The parties intend that this agreement, together with all
attachments, schedules, exhibits, and other documents that both are referenced in this
agreement and refer to this agreement,
(a) represent the final expression of the parties' intent relating to the subject matter of
this agreement,
(b) contain all the terms the parties agreed to relating to the subject matter, and
(c) replace all of the parties' previous discussions, understandings, and agreements
relating to the subject matter of this agreement.
29.2. Counterparts
(a) Signed in Counterparts. This agreement may be signed in any number of
counterparts.
(c) Counterparts Form One Document. Together, all counterparts form one single
document.
29.3. Amendment. This agreement can be amended only by a writing signed by both
parties.
29.4. Assignment. Neither party may assign this agreement or any of their rights or
obligations under this agreement without the other party's written consent.
30.1. Binding Effect. This [agreement /plan] will benefit and bind the parties and their
respective heirs, successors, and permitted assigns.
30.2. Notices
(a) Method of Notice. The parties shall give all notices and communications between
the parties in writing by (i) personal delivery, (ii) a nationally-recognized, next-day
courier service, (iii) first-class registered or certified mail, postage prepaid[, (iv) fax][,
or (v) electronic mail] to the party's address specified in this agreement, or to the
address that a party has notified to be that party's address for the purposes of this
section.
(b) Receipt of Notice. A notice given under this agreement will be effective on
(ii) if mailed, the earlier of the other party's receipt of it and the [fifth] business day
after mailing it.
(a) Arbitration. Any dispute or controversy arising out of this agreement and
[SUBJECT MATTER OF THE AGREEMENT] will be settled by arbitration in
[STATE], according to the rules of the American Arbitration Association then in effect,
and by [NUMBER OF ARBITRATORS] arbitrators[s].
(b) Judgment. Judgment may be entered on the arbitrator's award in any court having
jurisdiction.
(c) Arbitrator's Authority. The arbitrator will not have the power to award any
punitive [or consequential] damages.
(a) Governing Law. This agreement, and any dispute arising out of the [SUBJECT
MATTER OF THE AGREEMENT], shall be governed by the laws of the State of
[GOVERNING LAW STATE].
(b) Consent to Jurisdiction. Each party hereby irrevocably consents to the [exclusive,
non-exclusive] jurisdiction and venue of any [state or federal] court located within
[VENUE COUNTY] County, State of [VENUE STATE], in connection with any
matter arising out of this [agreement / plan] or the transactions contemplated under this
[agreement / plan].
(i) agrees that process may be served on it in any manner authorized by the Laws of
the State of [GOVERNING LAW STATE], and
(ii) waives any objection which it might otherwise have to service of process under
the Laws of the State of [GOVERNING LAW STATE].
30.5. Force Majeure. A party shall not be liable for any failure of or delay in the
performance of this agreement for the period that such failure or delay is
(b) materially affects the performance of any of its obligations under this agreement,
and
(c) could not reasonably have been foreseen or provided against, but
will not be excused for failure or delay resulting from only general economic conditions
or other general market effects.
30.6. Waiver
(a) Affirmative Waivers. Neither party's failure or neglect to enforce any rights under
this agreement will be deemed to be a waiver of that party's rights.
(d) No Course of Dealing. No single or partial exercise of any right or remedy will
preclude any other or further exercise of any right or remedy.
30.7. Severability. If any part of this agreement is declared unenforceable or invalid, the
remainder will continue to be valid and enforceable.
30.8. Interpretation
(i) Accounting Principles. Unless otherwise specified, where the character or amount
of any asset or liability, item of revenue, or expense is required to be determined, or
any consolidation or other accounting computation is required to be made, that
determination or calculation will be made in accordance with the generally accepted
accounting principles defined by the professional accounting industry in effect in the
United States ("GAAP").
(ii) Currency. Unless otherwise specified, all dollar amounts expressed in this
agreement refer to American currency.
(iii) "Including." Where this agreement uses the word "including," it means
"including without limitation," and where it uses the word "includes," it means
"includes without limitation."
(1) the then-current, actual knowledge of the directors and officers of that party, and
(2) the knowledge that would or should have come to the attention of any of them
had they investigated the facts related to that statement and made reasonable
inquiries of other individuals reasonably likely to have knowledge of facts related to
that statement.
(v) Statutes, etc. Unless specified otherwise, any reference in this agreement to a
statute includes the rules, regulations, and policies made under that statute and any
provision that amends, supplements, supersedes, or replaces that statute or those rules
or policies.
(b) Number and Gender. Unless the context requires otherwise, words importing the
singular number include the plural and vice versa; words importing gender include all
genders.
(c) Headings. The headings used in this agreement and its division into sections,
schedules, exhibits, appendices, and other subdivisions do not affect its interpretation.
(e) Calculation of Time. In this agreement, a period of days begins on the first day
after the event that began the period and ends at 5:00 p.m. [TIME ZONE] Time on the
last day of the period. If any period of time is to expire, or any action or event is to
occur, on a day that is not a Business Day, the period expires, or the action or event is
considered to occur, at 5:00 p.m. [TIME ZONE] Time on the next Business Day.
(f) Construction of Terms. The parties have each participated in settling the terms of
this agreement. Any rule of legal interpretation to the effect that any ambiguity is to be
resolved against the drafting party will not apply in interpreting this agreement.
(g) Conflict of Terms. If there is any inconsistency between the terms of this
agreement and those in any schedule to this agreement or in any document entered into
under this agreement, the terms of [this agreement/[SPECIFIED AGREEMENTS]] will
prevail. The parties shall take all necessary steps to conform the inconsistent terms to
the terms of [this agreement / [SPECIFIED AGREEMENTS].
[PARTY A NAME]
[PARTY B NAME]