What do you have to know about Contracts of Software?

Contracts in the world of software have a niche for them popularly recognized as Software Development Agreements, End User License Agreements, Software License Agreements, Terms of Service, and Privacy Policy. It specifies the involved party’s legal duties to each other if any dispute arises and find ways for amicable and agreed solutions.

What is Software Development Agreement?

The Software Development Agreements are in essence where one party, an actual developer or a software industry developing the software agrees to develop a software application for another party who is the client.

What are End-User License Agreements?

End-User License Agreement (EULA) is an end-user license contract by the author of the software and the user of the software. The user has his/her own tendency of freedom to deny acceptance to the terms and conditions and can promptly click ‘Do not agree’ or ‘I Agree’ during install. Breaching EULA is not binding to the law unless it meets certain contractual conditions of service.

What is a Software License Agreement?

A software license agreement is a legal contract agreement between the licensor/ author of the software and the user/purchaser of the software which technically defines the purchasers’ rights to the software. It’s basically the copyright license.

Software License Agreements describe in detail ‘how and when’ of the software usages with the restrictions that go with the software.

What are Terms of Service?

Terms of Service are the legal agreements made between a service provider and the user who is interested in the use of the software service provider. When the user agrees to the terms of service (TOS), the service offered by the software vendor and service provider can be used.

By determining a set of regulations that the users agree to follow a Terms of Service is legally binding. Terms of Service are otherwise known as the Terms and Conditions Agreement.

This provides a legal platform for the website or software and it’s strongly required to have one.

What is a Privacy policy?

The privacy policy should determine what personal data is collected for use, how they are collected, where it is stored and shared with third parties. And importantly determine how users can limit the data is collected and withdraw consent where and when necessary.

Unlike all the above, a privacy policy is definitely needed by the law if the software or application collects users’ private data.

Choose the ones which suit your software genre.

Each one serves a purpose depending on the different software applications and usage. Its good to have one or a combination of above to seal a good software contract that benefits both the developer/vendor and the clients.

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