Software Development Agreement Template

Download the formDownload the Word

The modern market has shifted its interest across contemporary techniques and methods of attracting and interacting with customers. One effective method that is highly promoted in the market is the use of software tools. The newly developed platforms and businesses focus on using software applications for bringing an influence to the market. However, developing a software tool is not quite simple.

Whenever it comes to building up a software application for a certain party, the main part focuses on hiring another party having expertise in this service. For that, they come up with signing software development agreements that help them ratify and validate the process.

What is a Software Development Agreement?

A company usually requires software when they focus on incorporating the specific tool into their product, services, and processes. If the company is not capable of designing the software all by themselves, they have to consider hiring another party. The procedure of hiring involves signing across a documented agreement. This documented agreement is known as a software development contract.

A simple software development agreement is signed across two parties where the party having expertise in software design agrees on building a software application. This document does not only focus on the clauses that confirm the agreement. It also outlines all the terms and agreements that are being negotiated between both parties.

The existence of a software contract template provides legal remedies to both parties. Any specific party can pursue their opposite if there is any likelihood of a violation of the settled terms in the agreement. The use of this contract template also enables the party to settle across the scope of the work that they are required to work on. This helps them avoid unnecessary confusion.

Dos and Don'ts Checklist for A Software Development Agreement

Designing a complete software application features a series of procedures and steps. These steps are necessary for the complete execution of the project under a high success rate. However, before two parties confirm their collaboration by signing across a software development contract, they should always look across finalizing various requirements for avoiding any disparity.

Dos Checklist

  1. The software development party should be sure of their team. Before taking up a certain task, the party has to ensure a fully operational team under their supervision.
  2. The purpose of the project should be clearly stated within the contract.
  3. The requirements of the software application that is to be associated with the work of the client should be outlined properly.
  4. The software development agreement should clearly define the boundaries where the outcome is acceptable to the main party.

Don'ts Checklist:

  1. The company should be patient in allowing the opposite party to confirm the request for a proposal.
  2. All such clauses that can lead to a determined dispute should be ignored within the contract.
  3. Do not forget to mention the terms of the intellectual property rights associated with the project.

Tips for Writing a Software Development Agreement

Contracts are encouraged to be concise and comprehensive in expressing their purpose. A similar approach is observed across a software contract template that should be designed with a clear focus across all the elements in the process. As using software contract templates promotes legal ease and client protection, the company should bear the following concepts in their mind.

If you are up for writing a perfect software development contract template, you have to provide a detailed and clarified differentiation in the work phases of the project. The client always prefers completing the project with defined milestones. Following this, the contract template should be focused on providing a clear understanding of the payments and their plans involved in the process.

The client should remain sound to their customers in all cases. If a certain party is looking forward to including an open-source system in their development, they should clearly write it down within the agreement. Along with all these features, the company can proceed towards writing a perfect software development agreement. The discussed tips and tricks can guide you in designing a perfect agreement.

Important Notes About Service Level Agreement

Whenever a project is being covered by two different parties, it is encouraged to have an appropriate agreement that outlines their service levels. Having a service level agreement in a company is not new; however, its existence has always prevailed for its importance in the market. The use of an SLA allows the parties to be on the same page under the clauses of standards and services.

With an assurance of being offered the minimal standards and services in the agreement, the company should also define the contingency terms. An SLA should be solid to discuss all the unmet obligations and provide several consequences to these situations. With an SLA in hand, the company can charge the opposite parties for the delays and discrepancies caused in the project.

Accountability is one of the key factors that should be focused on across all kinds of jobs and projects. Although there are not separate clauses that define accountability, an SLA constitutes all the important clauses and offers a unique direction to the involved parties. With a Service Level Agreement in the market, every business owner and service provider should focus on involving this in their professional lives.


A software development contract offers a very distinct understanding of developing a complete software application under a defined boundary. The existence of such an agreement is considered quite necessary and is encouraged to be implemented at all scales. This provides the individuals a coherent understanding of the process involved while designing different software development agreements.

Related Agreement Template Documents

View All Documents >

Create Document

Create a high quality document online now!

Create Document