EXPLANATORY NOTES FOR THE SOFTWARE DEVELOPMENT AGREEMENT, WHERE SUCH AGREEMENT IS IN FAVOUR OF THE PROVIDER OF SERVICES (THE INDEPENDENT CONTRACTOR)
This agreement is for use by software development houses. While it is a fair and equitable agreement to both parties, it is largely drafted in favour of the software developer PROVIDING the services (the independent contractor).
Note that this agreement can only be used where the receiver of services does not constitute a “consumer” in terms of the Consumer Protection Act. i.e the receiver MUST BE a juristic entity with a turnover or asset value equal to, or more than R2m at the time of the transaction.
Note: we will shortly make available agreements that regulate transactions that fall under the Consumer Protection Act. This agreement is for transactions that DO NOT fall under the Consumer Protection Act. Always make certain that the receiver of services under this agreement is neither a juristic person with assets or a turnover UNDER R2m, nor a natural person.
PLEASE NOTE: If you are the party that REQUIRES software development services to be provided to it, then you must purchase the agreement titled “Software Development Agreement-Receiver“, as that is more protective of your rights
HOWEVER: If you are the party PROVIDING the software development services, then this is the correct agreement for you to use, as it is more protective of your rights
- is legally substantive (15 pages in total);
- is bordered;
- has pages numbered;
- is fully justified;
- is typed up using Tahoma font, size 10;
- has been meticulously spell-checked;
- is extremely professional in its appearance;
- has several drafting notes therein to guide a legal practitioner;
- can be printed onto 15 A4 pages. (In the interests of the environment, it is suggested that the agreement rather be printed back to back on 8 pages).
This SOFTWARE DEVELOPMENT AGREEMENT- PROVIDER contains the following clauses:
- DEFINITIONS AND INTERPRETATION
- APPOINTMENT AND RELATIONSHIP BETWEEN THE PARTIES
- BBBEE STATUS
- GOOD FAITH
- THE SOFTWARE APPLICATION SERVICES
- DEVIATION TO SPECIFICATIONS
- RISK AND OWNERSHIP
- UPDATING OF SOFTWARE APPLICATION
- LIMITATION OF LIABILITY
- GOVERNING LAW AND JURISDICTION
- DISPUTE RESOLUTION
- CESSION AND ASSIGNMENT
- WARRANTIES AND UNDERTAKINGS
- FORCE MAJEURE
- DOMICILIUM AND NOTICES
APPENDIX 1: FUNCTIONAL SPECIFICATIONS
APPENDIX 2: DEVELOPMENT PHASES
APPENDIX 3: PAYMENT
Please read carefully through the agreement and fill in all missing details; in preparing a signature document, please have regard to all the notes we have placed hereon to assist you with the conclusion of a professional, legally binding agreement.
We appreciate any constructive feedback concerning this agreement; such can be emailed to firstname.lastname@example.org.