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Software Development Contract Agreement Template for Malaysia

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Key Requirements PROMPT example:

Software Development Contract Agreement

"I need a Software Development Contract Agreement for a mobile banking app project starting March 2025, with strong data protection clauses and source code ownership provisions, compliant with Malaysian banking regulations."

Document background
The Software Development Contract Agreement is essential for businesses engaging in custom software development projects in Malaysia. This document is designed to establish a clear legal framework for software development services, protecting both the developer's and client's interests while ensuring compliance with Malaysian legislation. It should be used whenever a company or individual is commissioning bespoke software development, whether for internal use, commercial distribution, or client delivery. The agreement covers crucial aspects including project scope, development methodology, intellectual property rights, payment structures, acceptance testing, warranties, and liability limitations. It incorporates requirements from relevant Malaysian laws including the Contracts Act 1950, Digital Signature Act 1997, and Personal Data Protection Act 2010, making it suitable for both local and international parties operating within Malaysian jurisdiction.
Suggested Sections

1. Parties: Identifies and provides full details of the contracting parties (developer and client)

2. Background: Explains the context and purpose of the agreement, including the client's need for software development services

3. Definitions: Defines key terms used throughout the agreement

4. Scope of Services: Details the software development services to be provided, including deliverables and objectives

5. Project Timeline and Milestones: Specifies development phases, deadlines, and key delivery dates

6. Payment Terms: Details the fees, payment schedule, and payment conditions

7. Intellectual Property Rights: Addresses ownership and licensing of the developed software and related materials

8. Confidentiality: Protects confidential information shared during the development process

9. Acceptance Testing: Defines the acceptance criteria and testing procedures for deliverables

10. Warranties and Representations: Specifies warranties regarding the software and services provided

11. Limitation of Liability: Sets out liability limitations and exclusions

12. Term and Termination: Specifies contract duration and termination conditions

13. Force Majeure: Addresses circumstances beyond parties' control affecting performance

14. Dispute Resolution: Outlines procedures for resolving disputes

15. General Provisions: Includes standard boilerplate clauses like notices, amendments, and governing law

Optional Sections

1. Maintenance and Support: Include when post-development maintenance services are part of the agreement

2. Third-Party Software and Licenses: Include when the development involves third-party software integration

3. Data Protection and Privacy: Include when personal data processing is involved in the software

4. Source Code Escrow: Include when source code needs to be held in escrow for client protection

5. Service Level Agreement: Include when specific performance levels need to be maintained

6. Security Requirements: Include when specific security standards or compliance is required

7. Training and Documentation: Include when training and documentation services are part of the scope

8. Non-Solicitation: Include to prevent hiring of each other's employees

9. Change Management: Include when a formal process for scope changes is needed

10. Compliance with Specific Regulations: Include when software must comply with specific industry regulations

Suggested Schedules

1. Technical Specifications: Detailed technical requirements and specifications for the software

2. Project Plan: Detailed timeline, milestones, and resource allocation plan

3. Acceptance Criteria: Specific criteria for accepting deliverables and testing procedures

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

5. Service Level Requirements: Detailed performance metrics and service levels if applicable

6. Personnel Schedule: Key personnel assigned to the project and their roles

7. Third-Party Software List: List of third-party software and associated licenses to be used

8. Change Request Template: Standard format for requesting and documenting changes

9. Security Requirements Schedule: Detailed security specifications and compliance requirements

10. Documentation Requirements: Specifications for required technical and user documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok³ÉÈ˰æ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions


































Clauses



































Relevant Industries

Information Technology

Financial Services

Healthcare

E-commerce

Manufacturing

Education

Telecommunications

Retail

Professional Services

Government & Public Sector

Transportation & Logistics

Media & Entertainment

Real Estate

Energy & Utilities

Construction

Relevant Teams

Legal

Information Technology

Procurement

Software Development

Project Management

Operations

Risk & Compliance

Finance

Business Development

Engineering

Solutions Architecture

Vendor Management

Digital Transformation

Quality Assurance

Information Security

Relevant Roles

Chief Technology Officer

IT Director

Project Manager

Software Development Manager

Legal Counsel

Procurement Manager

Chief Information Officer

Contract Manager

Business Development Manager

Technical Lead

Solutions Architect

Head of Engineering

Digital Transformation Manager

IT Procurement Specialist

Vendor Management Officer

Chief Digital Officer

Technology Consultant

Operations Manager

Risk Management Officer

Compliance Officer

Industries










Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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