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Software Development Agreement

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Agreement with Computer Programmer

Agreement made on the day of day of , 20 , between

, of
(Name of Programmer)                                                   (Street Address, City, County, State, Zip Code)

referred to herein as Programmer, and , a corporation
(Name of Company)

organized and existing under the laws of the state of , with its
principal office located at , referred to herein as
Company.
(Name of State)                                                   (Street Address, City, County, State, Zip Code)

Whereas, Company desires to obtain the services of Programmer to provide certain computer-programming services on an as-needed basis, including services related to the design and development of certain computer software described in Exhibit A, attached hereto and made a part hereof, such software, including all know-how, trade secrets, copyrights, and patentable inventions, being hereinafter referred to collectively as the Program Materials);

Whereas, Company and Programmer acknowledge that the Program Materials are anticipated to be integrated into and become part of certain proprietary products owned by Company, and thereafter to be licensed by Company to third parties; and

Whereas, both Company and Programmer wish to set forth in writing the terms and conditions of their dealings, including rights as to the Program Materials;

Now, therefore, for and in consideration of the mutual covenants and conditions hereinafter set forth, the parties hereby agree as follows:

I. Services of Programmer.

A. Pursuant to the terms and conditions set forth in this Agreement, Company engages Programmer to perform the duties set forth in the attached Exhibit B, during the term of this Agreement, on an as-needed basis, and Programmer accepts such engagement. Unless otherwise mutually agreed, all services shall be performed at Company's facilities. Programmer agrees to use Programmer's best efforts, at a level consistent with persons having similar education, experience, and expertise in the software industry, in the performance of the services called for by this Agreement.

B. Nothing contained in this Agreement shall be deemed to preclude Company from retaining the services of other persons or entities undertaking the same or similar services as those undertaken by Programmer or from independently developing or acquiring materials or programs that are similar to or competitive with, the services provided under this Agreement.

II. Term of Agreement.

A. The term of this Agreement shall be for year(s) from the date first above written. Company anticipates that Company will require Programmer's services for not more than days of hours each per month. However, the actual services shall consist of specific tasks or results to be achieved and shall be performed at mutually agreeable times on an as-needed basis.

III. Independent Contractor. Programmer agrees that Programmer shall be acting as an independent contractor and shall not be considered or deemed to be an agent, employee, joint venturer, or partner of Company. Programmer shall have no authority to contract for or bind Company in any manner and shall not represent itself as an agent of Company or as otherwise authorized to act for or on behalf of Company. Programmer shall have no status as employee or any right to any benefit that Company grants Company's employees.

IV. Compensation. Company agrees to pay Programmer at the rate of dollars per for each of services rendered by Programmer during the term of this Agreement. Programmer shall invoice Company monthly for services performed during the preceding month; provided, however, that, unless otherwise agreed in writing by an authorized officer of Company, Company's maximum liability hereunder for all services performed during the term of this Agreement shall not exceed dollars

V. Obligation for Expenses. This Agreement does not entitle Programmer to any reimbursement of expenses, and Programmer shall bear sole responsibility for any expenses Programmer may incur at any time and in any connection with Programmer's performance pursuant to this Agreement.

VI. Ownership of Program Materials.

A. Programmer agrees that all Program Materials, reports, and other data or materials generated or developed by Programmer under this Agreement or furnished by Company to Programmer shall be and remain the property of Company. Programmer specifically agrees that all copyrightable material generated or developed under this Agreement shall be considered works made for hire and that such material shall, upon creation, be owned exclusively by Company. To the extent that any such material, under applicable law, may not be considered works made for hire, Programmer hereby assigns to Company the ownership of copyright in such materials, without the necessity of any further consideration, and Company shall be entitled to obtain and hold in Company's own name all copyrights in respect of such materials.

B. If and to the extent Programmer may, under applicable law, be entitled to claim any ownership interest in the Program Materials, reports, and other data or materials generated or developed by Programmer under this Agreement, Programmer transfers, grants, conveys, assigns, and relinquishes exclusively to Company all of Programmer's right, title, and interest in and to such materials, under patent, copyright, trade secret, and trademark law, in perpetuity or for the longest period otherwise permitted by law.

C. Programmer shall perform any acts that may be deemed necessary or desirable by Company to evidence more fully transfer of ownership of all materials designated under this Section VI to Company to the fullest extent possible, including but not limited to the making of further written assignments in a form determined by Company.

D. To the extent that any preexisting rights are embodied or reflected in the Program Materials, Programmer grants to Company the irrevocable, perpetual, nonexclusive, worldwide, royalty-free right and license to (i) use, execute, reproduce, display, perform, distribute copies of, and prepare derivative works based upon such preexisting rights and any derivative works thereof and (ii) authorize others to do any or all of the foregoing.

E. Programmer hereby represents and warrants that Programmer has full right and authority to perform Programmer's obligations and grant the rights and licenses herein granted, and that Programmer has neither assigned nor otherwise entered into an agreement by which Programmer purports to assign or transfer any right, title, or interest to any technology or intellectual property right that would conflict with Programmer's obligations under this Agreement. Programmer covenants and agrees that Programmer shall not enter into any such agreements.

VII. Protection of Proprietary Materials.

A. From the date of execution of this Agreement and for as long as the information or data remain Trade Secrets, Programmer shall not use, disclose, or permit any person to obtain any Trade Secrets of Company, including any materials developed or generated pursuant to this Agreement (whether or not the Trade Secrets are in written or tangible form), except as specifically authorized by Company.

B. Trade Secrets shall mean a whole or any portion or phase of any scientific or technical information, design, process, procedure, formula, or improvement relating to the development, design, construction, and operation of that is valuable and not generally known to competitors of Company.

C. Irreparable harm should be presumed if Programmer breaches any covenant in this Agreement for any reason. This Agreement is intended to protect Company's proprietary rights pertaining to the Program Materials, and any misuse of such rights would cause substantial harm to Company's business. Therefore, Programmer agrees that a court of competent jurisdiction should immediately enjoin any breach of this Agreement, upon a request by Company.

VIII. Return of Materials. Upon Company's request, but in any event upon termination of this Agreement, Programmer shall surrender to Company all memoranda, notes, records, drawings, manuals, computer software, and other documents or materials (and all copies of same) pertaining to the Program Materials, reports, and other data or materials generated or developed by Programmer or furnished by Company to Programmer, including all materials embodying any Trade Secrets. This Section VIII is intended to apply to all materials made or compiled by Programmer, as well as to all materials furnished to Programmer by Company or by anyone else that pertain to the Program Materials.

IX. Termination. This Agreement may be terminated by either party upon days' written notice to the other party. In the event of termination under this section by either party prior to the expiration of the term hereof, Company shall be obligated to compensate Programmer at the rate established by Section IV for services performed prior to the date of such termination.

X. Severability. The invalidity of any portion of this Agreement will not and shall not be deemed to affect the validity of any other provision. If any provision of this Agreement is held to be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and effect as if they had been executed by both parties subsequent to the expungement of the invalid provision.

XI. No Waiver. The failure of either party to this Agreement to insist upon the performance of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the terms and conditions of this Agreement, shall not be construed as subsequently waiving any such terms and conditions, but the same shall continue and remain in full force and effect as if no such forbearance or waiver had occurred.

XII. Governing Law. This Agreement shall be governed by, construed, and enforced in accordance with the laws of the State of

XIII. Notices. Unless provided herein to the contrary, any notice provided for or concerning this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified or registered mail if sent to the respective address of each party as set forth at the beginning of this Agreement.

XIV. Attorney’s Fees. In the event that any lawsuit is filed in relation to this Agreement, the unsuccessful party in the action shall pay to the successful party, in addition to all the sums that either party may be called on to pay, a reasonable sum for the successful party's attorney fees.

XV. Mandatory Arbitration. Notwithstanding the foregoing, and anything herein to the contrary, any dispute under this Agreement shall be required to be resolved by binding arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration Association then in force and effect.

XVI. Entire Agreement. This Agreement shall constitute the entire agreement between the parties and any prior understanding or representation of any kind preceding the date of this Agreement shall not be binding upon either party except to the extent incorporated in this Agreement.

XVII. Modification of Agreement. Any modification of this Agreement or additional obligation assumed by either party in connection with this Agreement shall be binding only if placed in writing and signed by each party or an authorized representative of each party.

XVIII. Assignment of Rights. The rights of each party under this Agreement are personal to that party and may not be assigned or transferred to any other person, firm, corporation, or other entity without the prior, express, and written consent of the other party.

XIX. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument.

XX. Compliance with Laws. In performing under this Agreement, all applicable governmental laws, regulations, orders, and other rules of duly-constituted authority will be followed and complied with in all respects by both parties.

WITNESS our signatures as of the day and date first above stated.

(Name of Company)

By:

(Printed Name of Programmer)

(Signature of Programmer)

 

By:

(Printed Name & Office in Corporation)

(Signature of Officer)

Enter text✕

What a Software Development Agreement Covers

A Software Development Agreement is a written contract that defines the relationship between a client and a developer for the design, development, delivery, maintenance, and licensing of software. It specifies scope, deliverables, timelines, payment terms, intellectual property ownership, confidentiality, warranties, acceptance criteria, liability limits, and termination rights. For U.S. transactions the agreement should also address data protection, export controls, and whether electronic signatures are permitted under ESIGN (15 U.S.C. ch. 96) or applicable state law such as UETA or New York's ESRA.

Why a Clear Agreement Matters

A precise agreement reduces scope disputes, assigns IP rights, clarifies payment and acceptance, and sets remedies for missed milestones. It protects both parties and supports enforceability under federal and state e-signature laws when properly executed.

Why a Clear Agreement Matters

Who Typically Uses This Agreement

Common users include software vendors, independent contractors, in-house development teams, and corporate procurement or legal teams.

  • Software vendors and product teams who need to assign and protect intellectual property rights.
  • Independent contractors and freelance developers needing clear payment, scope, and ownership terms.
  • Corporate legal, procurement, or IT teams that manage vendor relationships and compliance obligations.

The document suits both one-off projects and ongoing development relationships where clarity on IP, scope, and payment is essential.

Core Elements to Include

A professional Software Development Agreement organizes obligations and risk. Include concise, unambiguous clauses so expectations are enforceable and performance measurable.

Scope

Detailed description of features, modules, deliverables, acceptance criteria, and excluded work to avoid scope creep.

Deliverables

Define formats, delivery milestones, acceptance tests, and the process for correcting defects within specified timeframes.

Intellectual Property

Specify ownership, assignment, or license terms for source code, binaries, and third-party components, including work-for-hire language where appropriate.

Payment

State payment schedule, amounts, invoicing procedures, late fees, and whether payments trigger milestone acceptance.

Warranties & Liabilities

Include limited warranty periods, indemnification obligations, and a cap on liability tailored to commercial risk.

Termination

Describe termination for convenience and cause, cure periods, effect on IP, and post-termination deliverables.

Step-by-Step: Completing the Agreement

Follow an ordered process to reduce errors: confirm parties, define scope, set payment, add IP and confidentiality, and obtain signatures.

  • 01
    Confirm Parties: Verify legal names and appropriate signatory authority for each party.
  • 02
    Define Scope: Attach detailed exhibits and acceptance criteria to reduce ambiguity.
  • 03
    Set Payment: Specify amounts, schedule, and invoicing procedures clearly.
  • 04
    Execute: Sign with proper authority and record the effective date.

Recommended Digital Workflow Settings

Configure the electronic workflow to mirror contract steps: prepare, assign fields, authenticate signers, and store final records.

Field Configuration
Signature Fields One signature field per authorized signer; date and title fields required.
Authentication Email link plus optional SMS code or knowledge-based authentication for higher assurance.
Field Rules Use required fields and conditional visibility to prevent incomplete submissions.
Retention Save signed PDF with audit trail and export to secure storage.

Typical eSigning Flow for Contract Execution

A standard electronic execution streamlines routing, signer verification, and record capture while preserving legal evidence.

  • Upload Document: Upload final agreement PDF or DOCX to the signing platform.
  • Place Fields: Add signature, date, and initial fields where required.
  • Invite Signers: Send signing links via email or generate access codes.
  • Complete Signing: Platform captures timestamp, IP, and certificate of completion.

Platform and Integration Considerations

Choose a platform that supports required authentication, audit trails, and your storage or CRM integrations.

  • Integrations: Supports Salesforce, NetSuite, Microsoft 365, Google Workspace
  • File Formats: Accepts PDF, DOCX, and converts to PDF/A
  • Authentication: Email, SMS, KBA, and SSO options

eSignature Vendor Snapshot for Contract Execution

Compare common vendor features and starting prices for executing Software Development Agreements; signNow is listed first per platform comparison practice.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies Varies Varies Varies
Bulk Send Yes (premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Security and Compliance Highlights

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
SOC 2: SOC 2 Type II report available on request
HIPAA: HIPAA support with BAA available
21 CFR: 21 CFR Part 11 compliance support
ISO: ISO 27001 certified security program
Accessibility: WCAG 2.0 Level AA accessibility support

Key Legal Risks and Consequences

IP Dispute: Potential ownership litigation
Late Payment: Interest, collection, or suspension
Scope Creep: Unpaid work and disputes
Data Breach: Regulatory fines and notification costs
Contract Voidance: Invalid signature or authority
Tax Exposure: Misreporting or withholding liabilities

Common Drafting Mistakes to Avoid

  • Vague scope descriptions that do not specify deliverables or acceptance tests, leading to disputes over whether work meets obligations.
  • Failing to assign or license IP clearly, which can create uncertainty about who owns the source code or derivative works.
  • Omitting maintenance and support terms, leaving parties unclear about bug fixes, response times, and out-of-scope charges.
  • Using inconsistent dates or signer names across exhibits, which can render execution evidence ambiguous or delay enforceability.

Real-World Examples

These short examples show how organizations use the agreement to speed execution and protect rights.

Optica Ventures

Optica needed a simple, repeatable contract for client projects to reduce administrative time.

  • They standardized deliverables and payment milestones.
  • The result was fewer disputes, faster client onboarding, and clearer expectations for change orders across engagements.

Martin Properties

A property manager adopted a development contract for tenant-portal work to protect data and IP.

  • The agreement included HIPAA-adjacent data controls for health-related tenant services.
  • This ensured compliant handling of tenant information and allowed remote execution without in-person signatures.

Typical Contract Dates and Deadlines

Document the dates that trigger obligations, payments, acceptance periods, and warranty windows to avoid misunderstanding.

Effective Date:

Execution date in MM/DD/YYYY format; sets the contract clock.

Milestone Delivery Dates:

List each milestone date and associated deliverable for tracking and acceptance.

Payment Due Dates:

Specify net terms (e.g., Net 30) and invoicing deadlines tied to milestones.

Acceptance Period:

Window (e.g., 15 business days) for client testing and written acceptance.

Warranty Period:

Defined defect correction term (e.g., 90 days post-acceptance).

Key Milestones in the Delivery Timeline

Sequence the project lifecycle as numbered milestones so each party knows the critical transition points and responsibilities.

01

Agreement Execution

Signatures by authorized representatives and effective date recorded.

02

Project Kickoff

Requirements finalized and project team assigned.

03

Beta Delivery

Interim deliverable for testing and feedback.

04

Final Acceptance

Customer signs acceptance or raises documented defects for remediation.

Practical Drafting and Execution Tips

Apply these practical measures to reduce risk, speed approvals, and make signed agreements defensible.

Use Exhibits for Detail
Put technical specifications, acceptance tests, and schedules in exhibits. That keeps the main agreement concise while making scope and testing criteria unambiguous and easier to update without amending core commercial terms.
Limit Liability Proportionally
Negotiate liability caps tied to fees or insurance limits and exclude consequential damages where commercially reasonable to balance risk between parties and preserve insurability.
Require Authorized Signatories
Include a representation that signers have authority to bind their organizations; maintain a record of corporate resolutions or POAs for large vendors.
Preserve Audit Trails
Capture and store the signed PDF plus full audit trails, timestamps, and signer authentication records to strengthen enforceability under ESIGN and state statutes.

Frequently Asked Questions

Answers to common execution, enforceability, and practical questions when using a Software Development Agreement.


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