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Software Development Agreement

Last revision Last revision 12-03-2024
Formats FormatsWord and PDF
Size Size13 to 19 pages
Fill out the template

Last revisionLast revision: 12-03-2024

FormatsAvailable formats: Word and PDF

SizeSize: 13 to 19 pages

Fill out the template

A Software Development Agreement is a contract entered into between a Service Provider (individual/entity developing the software) and a client. The Service Provider will act as a third party who is merely appointed to develop the software. This Agreement will set out the exact scope of work, as well as timeframes for completion of work, payment terms and dispute resolution mechanisms.

Software is like digital tools or programs you use on your computer or laptop such as Microsoft Word for word processing and Adobe Photoshop for editing photos.

While the Agreement simplifies the process of resolving disputes, it also prevents many disputes from arising in the first place. They do this by forcing the parties to discuss and record the key elements of the arrangement upfront, which is why it is pertinent to enter into a written agreement.

This Agreement is specifically created for software development services, for website development, a separate Website Development Agreement is available and for any other services a separate Service Agreement is available on this software. This Agreement does not create any employee-employer relationship, to create an employment relationship, a separate Employment Agreement is available on this software.


How to Use This Document?

This software Development Agreement can be used for the one-time development of the software or continuing development support.

Providing more details about the arrangement can prevent disputes. Important details to consider include:

  • description of the work to be performed;
  • how it will be determined that the work is complete and whether there are any milestones;
  • when payment by a client will be released;
  • the introduction of changes/amendments inside the text of the document;
  • how the agreement may be terminated; and
  • what do parties do in the case of disputes.

The software Development Agreement will be legally binding when it has been printed on non-judicial stamp paper or e-stamp paper, signed by both the Service Provider and the Client, and dated. By purchasing an e-stamp paper, the stamp duty can be paid online and also the printout of the stamp paper can be taken online. The value of the stamp paper would depend on the state in which it is executed. Each state in India has provisions in respect of the amount of stamp duty payable on such agreements.

Both the Service Provider and the Client should keep a signed copy of the software Development Agreement. In order to do this, two different copies can be signed, or if only one copy is signed, it can be photocopied and then distributed between the parties.


Applicable Law

The principles of the contract under the Indian Contract Act, 1872 would govern this agreement.


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