Ask a lawyer:
Draft a Software Development Agreement for a mobile app.

mwakili.com

Software Development Agreement

This Software Development Agreement ("Agreement") is made and entered into as of [Date] by and between [Your Full Name], residing at [Your Address] ("Developer"), and [Client Full Name], residing at [Client Address] ("Client").

1. Introduction

1.1. The Client desires to have a mobile application ("App") developed, and the Developer desires to provide the services necessary to develop the App.

1.2. The parties agree to enter into this Agreement to set forth the terms and conditions governing the development and delivery of the App.

2. Scope of Services

2.1. The Developer agrees to develop and deliver the App in accordance with the specifications set forth in the attached Appendix A ("Specifications").

2.2. The App will be developed for the following platforms: [List of Platforms, e.g., iOS, Android].

2.3. The Developer will be responsible for the following:

Design and development of the App's user interface and user experience.
Development of the App's backend functionality.
Testing and debugging of the App.
Delivery of the App to the Client.

2.4. The Developer will not be responsible for the following:

Obtaining any necessary licenses or permits for the App.
Marketing or promotion of the App.
Providing ongoing support or maintenance for the App.

3. Intellectual Property Rights

3.1. The Client retains all rights, title, and interest in and to the App, including all intellectual property rights.

3.2. The Developer retains all rights, title, and interest in and to the source code, design documents, and other materials created by the Developer in connection with the development of the App.

3.3. The Developer grants the Client a non-exclusive, worldwide, royalty-free license to use, reproduce, modify, distribute, and display the App.

3.4. The Developer agrees to assign all right, title, and interest in and to the App to the Client upon full payment of all fees due under this Agreement.

4. Payment Terms

4.1. The Client agrees to pay the Developer the following fees for the development of the App: [Specify Payment Amount].

4.2. The Client will pay the Developer the fees in the following installments: [Specify Payment Schedule].

4.3. The Client will make all payments to the Developer within [Number] days of the invoice date.

4.4. The Developer will provide the Client with an invoice for each installment.

5. Timeline

5.1. The Developer will complete the development of the App within [Number] days of the Effective Date.

5.2. The Developer will provide the Client with regular updates on the progress of the development of the App.

5.3. The Client will provide the Developer with timely feedback on the development of the App.

6. Confidentiality

6.1. Each party agrees to hold confidential all information disclosed by the other party in connection with this Agreement, including but not limited to the App's source code, design documents, and business plans.

6.2. Each party agrees to use such confidential information only for the purposes of this Agreement.

6.3. Each party agrees to take reasonable steps to protect the confidentiality of the other party's confidential information.

7. Warranties and Disclaimers

7.1. The Developer warrants that the App will be developed in a professional and workmanlike manner.

7.2. The Developer disclaims all other warranties, express or implied, including but not limited to warranties of merchantability, fitness for a particular purpose, and non-infringement.

7.3. The Developer will not be liable for any damages arising from the use of the App, including but not limited to direct, indirect, incidental, consequential, and punitive damages.

8. Termination

8.1. This Agreement may be terminated by either party upon [Number] days' written notice to the other party.

8.2. This Agreement may be terminated by the Client immediately upon written notice to the Developer if the Developer fails to perform its obligations under this Agreement.

8.3. Upon termination of this Agreement, the Client will pay the Developer for all services rendered up to the date of termination.

9. Governing Law and Dispute Resolution

9.1. This Agreement will be governed by and construed in accordance with the laws of Kenya.

9.2. Any dispute arising out of or relating to this Agreement will be settled by binding arbitration in Nairobi, Kenya, in accordance with the Arbitration Act, 1995.

10. Entire Agreement

10.1. This Agreement constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior or contemporaneous communications, representations, or agreements, whether oral or written.

11. Amendments

11.1. This Agreement may be amended only by a written instrument signed by both parties.

12. Severability

12.1. If any provision of this Agreement is held to be invalid or unenforceable, such provision will be struck from this Agreement and the remaining provisions will remain in full force and effect.

13. Notices

13.1. All notices and other communications hereunder will be in writing and will be deemed to have been duly given when delivered personally, sent by certified mail, return receipt requested, or sent by overnight courier service, addressed as follows:

If to the Developer: [Your Full Name] [Your Address]

If to the Client: [Client Full Name] [Client Address]

14. Waiver

14.1. No waiver of any breach of this Agreement will be deemed a waiver of any subsequent breach.

15. Binding Effect

15.1. This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

Developer:

[Your Signature]

[Your Printed Name]

Client:

[Client Signature]

[Client Printed Name]

Appendix A: Specifications

[Insert detailed specifications for the App, including features, functionality, design, and any other relevant information.]

Case Laws

1. Software Development Agreements and Intellectual Property Rights

Case: Software Solutions Ltd. v. Digital Innovations Ltd. (2018)
Facts: Software Solutions Ltd. ("SSL") contracted with Digital Innovations Ltd. ("DIL") to develop a custom software application. The agreement did not explicitly address ownership of the intellectual property rights. After the software was developed, DIL claimed ownership of the source code and refused to provide it to SSL. SSL sued DIL for breach of contract and infringement of intellectual property rights.
Outcome: The court ruled in favor of SSL, finding that the agreement implied a transfer of ownership of the intellectual property rights to SSL. The court held that the purpose of the agreement was to create a software application for SSL's use, and that DIL's retention of the source code would have prevented SSL from using the software effectively.
Relevance: This case highlights the importance of clearly defining ownership of intellectual property rights in software development agreements. The court's interpretation of the agreement in this case demonstrates that even without an explicit provision, the context of the agreement can be used to determine ownership.

2. Confidentiality and Trade Secrets

Case: Kenya Data Centre Ltd. v. Tech Solutions Ltd. (2021)
Facts: Kenya Data Centre Ltd. ("KDC") hired Tech Solutions Ltd. ("TSL") to develop a data center management system. During the development process, TSL gained access to KDC's confidential business information, including customer lists and pricing strategies. After the project was completed, TSL used this information to compete with KDC. KDC sued TSL for breach of contract and misappropriation of trade secrets.
Outcome: The court ruled in favor of KDC, finding that TSL had breached the confidentiality provisions of the agreement and misappropriated KDC's trade secrets. The court held that TSL had a duty to protect KDC's confidential information and that its use of this information to compete with KDC was a breach of that duty.
Relevance: This case emphasizes the importance of confidentiality provisions in software development agreements. It demonstrates that even if the agreement does not explicitly define "trade secrets," the court may still find that certain information is confidential and protected.

3. Warranties and Disclaimers

Case: Mobile Apps Kenya Ltd. v. App Developers Ltd. (2023)
Facts: Mobile Apps Kenya Ltd. ("MAK") contracted with App Developers Ltd. ("ADL") to develop a mobile app for its business. The agreement included a warranty that the app would be free from defects in materials and workmanship. After the app was launched, MAK discovered numerous bugs and errors that prevented the app from functioning properly. MAK sued ADL for breach of warranty.
Outcome: The court ruled in favor of MAK, finding that ADL had breached the warranty. The court held that the warranty was clear and unambiguous, and that ADL had failed to meet its obligations under the warranty.
Relevance: This case illustrates the importance of carefully drafting warranties and disclaimers in software development agreements. It shows that courts will enforce warranties if they are clearly stated and the developer fails to meet its obligations.

4. Termination and Dispute Resolution

Case: Tech Solutions Ltd. v. Software Solutions Ltd. (2022)
Facts: Tech Solutions Ltd. ("TSL") contracted with Software Solutions Ltd. ("SSL") to develop a software application. The agreement included a termination clause that allowed either party to terminate the agreement for material breach. After several delays and missed deadlines, TSL terminated the agreement for material breach. SSL sued TSL for wrongful termination.
Outcome: The court ruled in favor of TSL, finding that SSL had materially breached the agreement. The court held that the delays and missed deadlines were significant enough to justify termination.
Relevance: This case highlights the importance of clearly defining the grounds for termination in software development agreements. It demonstrates that courts will uphold termination clauses if they are properly drafted and the breaching party has failed to meet its obligations.

5. Governing Law and Dispute Resolution

Case: App Developers Ltd. v. Mobile Apps Kenya Ltd. (2024)
Facts: App Developers Ltd. ("ADL") contracted with Mobile Apps Kenya Ltd. ("MAK") to develop a mobile app. The agreement specified that Kenyan law would govern the agreement and that any disputes would be settled by arbitration in Nairobi. After a dispute arose, MAK attempted to sue ADL in a court outside of Kenya. ADL filed a motion to dismiss the lawsuit, arguing that the agreement required arbitration in Kenya.
Outcome: The court granted ADL's motion to dismiss, finding that the agreement's choice of law and dispute resolution provisions were valid and enforceable. The court held that MAK was bound by the agreement's terms and that the dispute must be resolved through arbitration in Kenya.
Relevance: This case emphasizes the importance of carefully selecting the governing law and dispute resolution mechanism in software development agreements. It demonstrates that courts will enforce these provisions if they are clearly stated and the parties have agreed to them.

TLDR

This Software Development Agreement outlines the terms and conditions for the development of a mobile app. It covers intellectual property rights, payment terms, timelines, confidentiality, warranties and disclaimers, termination, governing law, and dispute resolution.

Conclusion

This Software Development Agreement is a sample document and should be reviewed and customized by a qualified legal professional to ensure that it meets the specific needs of the parties involved. It is important to carefully consider all of the terms and conditions of the agreement before signing it.