This Software Development Services Contract is essential for businesses and organizations in Malaysia engaging external parties for custom software development projects. It serves as a comprehensive legal framework that protects both the service provider and the client, ensuring clear understanding of project requirements, deliverables, and responsibilities. The contract is structured in accordance with Malaysian legislation, including the Contracts Act 1950 and relevant technology laws, making it suitable for both domestic and international parties operating within Malaysian jurisdiction. It addresses crucial aspects such as intellectual property rights, data protection, payment terms, project milestones, acceptance criteria, and warranty provisions, while incorporating specific requirements for software development projects in the Malaysian context.
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1. Parties: Identification and details of the service provider (developer) and the client
2. Background: Context of the agreement and brief description of the parties' intentions
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of the software development services to be provided
5. Project Timeline and Milestones: Development phases, delivery dates, and key project milestones
6. Payment Terms: Fee structure, payment schedule, and payment conditions
7. Intellectual Property Rights: Ownership and licensing of developed software and related materials
8. Confidentiality: Protection of confidential information and trade secrets
9. Acceptance Testing: Procedures for testing and accepting deliverables
10. Warranties and Representations: Warranties regarding service quality and compliance with specifications
11. Limitation of Liability: Limits on parties' liability and exclusions
12. Term and Termination: Duration of agreement and termination conditions
13. Force Majeure: Provisions for unforeseen circumstances affecting performance
14. Governing Law and Jurisdiction: Applicable law and jurisdiction for dispute resolution
15. General Provisions: Standard boilerplate clauses including notices, amendments, and assignment
1. Source Code Escrow: Provisions for source code deposit with a third party - used when client requires access to source code under specific conditions
2. Data Protection: Specific provisions for handling personal data - required if the software processes personal information
3. Service Level Agreement: Detailed service levels and performance metrics - used for ongoing maintenance and support arrangements
4. Change Control: Procedures for managing changes to project scope or requirements - useful for complex or long-term projects
5. Security Requirements: Specific security standards and compliance requirements - important for sensitive or regulated applications
6. Third-Party Software: Provisions regarding use and licensing of third-party components - needed if third-party software is incorporated
7. Training and Documentation: Requirements for user training and system documentation - important for complex systems requiring user training
8. Disaster Recovery: Procedures for data backup and system recovery - crucial for business-critical applications
9. Non-Solicitation: Restrictions on hiring each other's employees - useful in competitive markets
10. Insurance Requirements: Specific insurance coverage requirements - important for high-value or high-risk projects
1. Technical Specifications: Detailed technical requirements and specifications for the software
2. Project Plan: Detailed project timeline, resources, and delivery schedule
3. Acceptance Criteria: Specific criteria for accepting deliverables and testing procedures
4. Fee Schedule: Detailed breakdown of fees, costs, and payment milestones
5. Service Levels: Detailed service level metrics and performance standards
6. Personnel: Key personnel assigned to the project and their roles
7. Security Standards: Detailed security requirements and compliance standards
8. Change Request Template: Standard form for requesting and documenting changes
9. Testing Procedures: Detailed testing methodologies and procedures
10. Documentation Requirements: Specifications for required technical and user documentation
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