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Software Development Agreement


Overview
- The Software Development Agreement is used when a buyer "hires" a developer to develop custom software.  The buyer pays for the development effort, and has full ownership of the software produced.
- It is customary for software developers to prepare software and provide a copy to a user for a fee.  The software developer retains ownership of the software.  There may be thousands of users of the software.
- Instead of taking standard software and trying to modify it to fit a specific need, a business could hire a software development firm to create all new software specifically designed to fit the business' needs.
- Purchasing customized software gives the owner complete control over the program, the software is prepared to fit the exact needs of the business and it allows the owner to license the new software to other users for a fee.

When You Need It
- To document the agreement between a company and a developer when a company or individual desires to purchase custom software.  
- The parties agree upon the specific functional specifications for the software, and the developer produces the software. 
- Upon payment of the purchase price and completion of other obligations, the buyer owns all of the rights and interests in the software.


Getting Started

You will need:
- Name and address of the person buying the software.
- Name and address of the person developing the software.
- Detailed description of the software being developed.
- Details of the agreement, including information on training, purchase price and how it will be paid, completion date and any warranties provided.

When to Review and Revise 
- To correct the information contained in the agreement.
- To draft another Software Development Agreement.