The Master Development Agreement is utilized when parties anticipate an ongoing development relationship involving multiple projects or phases. This contract type provides a standardized framework that reduces negotiation time for subsequent projects while ensuring consistent terms across all development work. It typically includes detailed provisions for intellectual property rights, confidentiality, change management, and risk allocation. In the U.S. jurisdiction, this agreement is particularly valuable for complex, long-term development relationships where flexibility and scalability are essential.
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1. Parties: Identification and details of all contracting parties
2. Background/Recitals: Context and purpose of the agreement
3. Definitions: Key terms used throughout the agreement
4. Scope of Development: Detailed description of development work to be performed
5. Project Management: Governance structure, reporting requirements, and decision-making processes
6. Intellectual Property Rights: Ownership and licensing of developed IP
7. Payment Terms: Compensation, payment schedule, and related financial terms
8. Term and Termination: Duration and conditions for ending the agreement
1. Change Control: Process for managing changes to scope - recommended for complex projects with likely scope changes
2. International Compliance: Cross-border requirements and compliance - necessary when development involves multiple jurisdictions
3. Source Code Escrow: Terms for source code protection - applicable for software development projects
4. Data Protection: Specific data handling requirements - required when personal or sensitive data is involved
1. Statement of Work: Detailed technical specifications and deliverables
2. Project Timeline: Milestones and delivery dates
3. Price Schedule: Detailed breakdown of costs and payment terms
4. Service Levels: Performance metrics and standards
5. Security Requirements: Security protocols and standards to be followed
6. Key Personnel: List of key personnel and their roles in the development project
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