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What is a Software development agreement?

A Software Development Agreement is a legal contract between a client (the “client”) and a software developer or development company (the “developer”) that outlines the terms and conditions governing the development of custom software or software-related services. This agreement helps to establish clear expectations, responsibilities, and deliverables for both parties involved in the software development process.


  • Break Down Scope Into Phases: To manage complexity and maintain momentum, divide the project into manageable phases or milestones. Each phase should have clearly defined deliverables and timelines.
  • Address Intellectual Property Rights: Intellectual property rights can be likened to the ownership of a piece of art. Clearly delineate who retains ownership of the software and related assets. Consider whether the client will exclusively own the final product or if the developer will retain certain proprietary components.