Simple Software Development Contract

Simple Software Development Contract Template for Malaysia

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Key Requirements PROMPT example:

"I need a Simple Software Development Contract for my Malaysian e-commerce startup to hire a developer to create a customer loyalty app, with development starting in March 2025 and including source code ownership provisions."

Document background

The Simple Software Development Contract is designed for use in the Malaysian market where there is a growing need for clearly structured yet accessible software development agreements. This document is particularly suitable for small to medium-sized software development projects where parties need a comprehensive but not overly complex agreement. It incorporates key requirements under Malaysian law, including compliance with the Contracts Act 1950, Digital Signature Act 1997, and Copyright Act 1987. The contract covers essential elements such as project scope, development methodology, deliverables, testing procedures, and intellectual property rights, while remaining adaptable to various types of software development projects. It is specifically crafted to balance the interests of both developers and clients while ensuring legal compliance in the Malaysian jurisdiction.

Suggested Sections

1. Parties: Identification of the client and developer, including registered addresses and company registration numbers

2. Background: Context of the agreement and brief description of the project objectives

3. Definitions: Definitions of technical terms, project-specific terminology, and legal terms used in the agreement

4. Scope of Services: Detailed description of the software development services to be provided

5. Project Timeline and Milestones: Key dates, development phases, and delivery schedules

6. Developer's Obligations: Core responsibilities of the developer including development standards and methodologies

7. Client's Obligations: Client's responsibilities including provision of information, materials, and approvals

8. Acceptance Testing: Procedures for testing deliverables and acceptance criteria

9. Payment Terms: Fee structure, payment schedule, and payment conditions

10. Intellectual Property Rights: Ownership and licensing of pre-existing and newly developed IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Warranties and Representations: Standard warranties regarding service quality and compliance with specifications

13. Limitation of Liability: Caps on liability and exclusions

14. Term and Termination: Contract duration and termination provisions

15. General Provisions: Standard boilerplate clauses including governing law, notices, and dispute resolution

Optional Sections

1. Source Code Escrow: Optional section for arrangements to deposit source code with a third party, recommended for business-critical software

2. Maintenance and Support: Optional section for ongoing maintenance and support services post-development

3. Data Protection: Required if the software will process personal data, detailing compliance with PDPA 2010

4. Change Management: Procedures for handling change requests and scope modifications

5. Security Requirements: Specific security standards and compliance requirements, important for sensitive applications

6. Third-Party Components: Details of third-party software components and associated licenses

7. Training: Provisions for training client's staff on the software

8. Disaster Recovery: Business continuity and disaster recovery procedures, important for critical systems

Suggested Schedules

1. Schedule 1 - Software Specifications: Detailed technical specifications and functional requirements

2. Schedule 2 - Project Plan: Detailed project timeline, milestones, and deliverables

3. Schedule 3 - Acceptance Test Criteria: Specific criteria and procedures for acceptance testing

4. Schedule 4 - Fee Schedule: Detailed breakdown of fees, payment milestones, and rates

5. Schedule 5 - Service Level Agreement: Performance metrics and service levels for development and support

6. Appendix A - Technical Environment: Details of the development and deployment environment specifications

7. Appendix B - Contact Details: Key personnel and escalation contacts for both parties

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok��˰� | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co

Relevant legal definitions

Clauses

Relevant Industries

Information Technology

Financial Services

E-commerce

Healthcare

Education

Manufacturing

Retail

Professional Services

Telecommunications

Government & Public Sector

Logistics & Supply Chain

Media & Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Operations

Software Development

Project Management

Risk & Compliance

Finance

Business Development

Digital Transformation

Technical Operations

Quality Assurance

Relevant Roles

Chief Technology Officer

IT Director

Software Development Manager

Project Manager

Legal Counsel

Procurement Manager

Contract Administrator

Business Development Manager

Technical Lead

Operations Manager

Chief Information Officer

Chief Executive Officer

Head of Digital Transformation

IT Procurement Specialist

Risk Management Officer

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