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Software Development Agreement

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Introduction
Description
Use
Table of Contents

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Introduction

Sometimes the software available on the market does not meet the needs of a business. In such circumstances, the business has to either use software poorly adapted to its needs to manage its operations, for which it requires a license to use (see I02.200 of the Business Precedents), or retain the services of a programmer to create a program specifically tailored to its needs.

Of course, the first option incurs lower costs than the second. However, the resulting issues that may arise in management and operation can cause considerable costs for the business. The second option, although it is more expensive initially, may facilitate the management and operation of the business and thus be advantageous in the long term. This document establishes the main components of the legal and financial framework of the second option, namely the grant of a contract to develop custom software to a third party.

Description

The Programming Agreement is the legal instrument by which a person operating a business hires a scientist to develop application software for its own commercial needs.

Use

We recommend the use of this document to govern the legal relationship arising in the case where a business wishes, in connection with the operation of its activities, to hire the services of an IT professional specializing in computer analysis and programming to develop a commercial application software in accordance with specifications previously prepared by the client, which software shall remain the property of the client. The decision to proceed with the development of such software is usually made by the Chief Information Officer (see document C03.400 of the Business Precedents), who is also in charge of ensuring the proper performance of such work and needs to clarify the terms of the programming agreement.

Table of Contents

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Application
0.01.04 Best Effort
0.01.05 Breach
0.01.06 Change in Control
0.01.07 Confidential Information
0.01.08 Encumber or Encumbrance
0.01.09 Event of Default
0.01.10 Force Majeure
0.01.11 Fundamental Provisions
0.01.12 Intellectual Property
0.01.13 Legal Representatives
0.01.14 Other’s Software
0.01.15 PARTY
0.01.16 Payment Schedule
0.01.17 Person
0.01.18 Prime Rate
0.01.19 Related Person
0.01.20 Schedule
0.01.21 Software
0.01.22 Specifications
0.01.23 Subsidiary
0.01.24 User Documentation
0.01.25 Work
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time and Dates
0.04.03 Financial References
0.04.04 References within Agreement
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 GAAP
1.00 PURPOSE
1.01 Work
1.02 Technical Support
1.03 Conditions
1.03.01 Required by CLIENT
1.03.02 Required by SUPPLIER
1.03.03 Choice
2.00 CONSIDERATION
2.01 Work
2.02 Adjustment
2.03 Technical Support
3.00 TERMS OF PAYMENT
3.01 Work
3.01.01 Deposit
3.01.02 Balance
3.02 Technical Support
3.03 Interest
3.04 Loss of Term
4.00 SECURITY
4.01 In favour of CLIENT
4.02 In favour of SUPPLIER
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF THE CLIENT
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Insurance
6.05 Nominee
6.06 Fundamental Provisions
6.07 Disclosure
6.08 Exportation
7.00 REPRESENTATIONS AND WARRANTIES OF THE SUPPLIER
7.01 Status
7.02 Authority
7.03 Binding Agreement
7.04 Insurance
7.05 Nominee
7.06 Fundamental Provisions
7.07 Disclosure
7.08 Resources
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Issuer
8.02.04 Co-insured
8.02.05 No Limitation
8.03 Indemnification
8.03.01 “Loss”
8.03.02 Scope
8.03.03 Procedure
8.03.04 Deductible
8.03.05 Limitation on Claims
8.04 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF THE CLIENT
9.01 Information
9.02 Contact Person
9.03 Operator
9.04 Master File Data
9.05 Non-solicitation of Staff
9.06 Reverse Engineering
9.07 Liability
10.00 DUTIES AND OBLIGATIONS OF THE SUPPLIE
10.01 Schedule
10.02 Best Effort
10.03 Collect and Analysis
10.04 Documentation
10.05 Installation and Start-up
10.05.01 Delivery
10.05.02 Installation
10.05.03 Training
10.05.04 Start-up Schedule
10.05.05 Notice
10.05.06 Telephone Service
10.06 Technical Support
10.06.01 Undertaking
10.06.02 Costs
10.07 Warranty
10.07.01 Imperfection
10.07.02 Exclusion
10.07.03 Liability
10.08 Non-solicitation of Clientele
10.09 Intellectual Property
10.09.01 Transfer
10.09.02 Exception
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Relationship
11.03.01 Independent Contractors
11.03.02 No Control over Performance
11.03.03 No Authority to Bind
11.04 Further Assurances
11.05 Other Remedies
11.05.01 Choices
11.05.02 No Limitations
11.06 Prescription
11.07 Intellectual Property
11.08 Intellectual Property Management
11.08.01 Acknowledgement and Assignment
11.08.02 Right of Ownership
11.08.03 Source Code
11.08.04 Licence Agreement
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Unilateral Termination
13.03 With FIVE (5) Days’ Prior Notice
13.04 Prior Notice
13.05 Change in Control
14.00 EFFECTIVE DATE
14.01 Retroactivity
14.02 Execution
14.03 Deferral
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial Term
15.03 Renewal
15.03.01 First Renewal
15.03.02 Subsequent Renewals
15.04 Survival
15.05 Non Renewal
16.00 SCOPE


SCHEDULE A - EXCERPT OF A RESOLUTION OF THE SUPPLIER
SCHEDULE B - EXCERPT OF A RESOLUTION OF THE SUPPLIER
SCHEDULE 0.01.14 – SOFTWARE USED IN THE PERFORMANCE OF THE WORK
SCHEDULE 0.01.16 – PAYMENT SCHEDULE
SCHEDULE 0.01.19 - SCHEDULE
SCHEDULE 0.01.22 - SPECIFICATIONS
SCHEDULE 1.02 – TECHNICAL SUPPORT PRICING
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Civil Law Version
Updated 14-02-2009
Québec
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