Software Contracts

Question 1

What 4 things does a contract between parties outline?

Answer 1

∙ their aims;
∙ their obligations and responsibilities;
∙ the criteria for fulfillment;
∙ the procedure for resolving disputes.

involves a loss for one party or a profit for another

Question 2

What 9 things does a contract for software development describe?

Answer 2

1) scope of the work;
2) client’s responsibilities;
3) project control;
4) warranty and maintenance;
5) confidentiality;
6) ownership of copyright;
7) indemnity;
8) arbitration procedures;
9) termination criteria.

Question 3

What does ‘scope of the work’ mean?

Answer 3

What software is to be developed

Question 4

What is the problem with describing the scope of the work for software development?

Answer 4

Client may not know. Developers and customers have different ideas of the finished software. It may change with time.

Question 5

What does ‘Client’s Responsibilities’ mean?

Answer 5

What does the client need to do or to provide

Question 6

What does ‘Project Control’ mean?

Answer 6

How the software development is to be managed. Usually a project manager.

Question 7

What does ‘Warranty and Maintenance’ mean?

Answer 7

How is the software to be supported after delivery?

Question 8

What does ‘Confidentiality’ mean?

Answer 8

What must the parties keep secret about each other?

Question 9

What does ‘Ownership of Copyright’ mean?

Answer 9

How is copyright to be assigned or licensed?

Question 10

What does ‘Indemnity’ mean?

Answer 10

How the client is to be protected from copyright infringements by the supplier?

Question 11

What does ‘Arbitration Procedures’ mean?

Answer 11

What is to be done in the event of disputes.

Question 12

What does ‘Termination Criteria’ mean?

Answer 12

How client or supplier can bring the contract to an end.

Question 13

What 3 laws can liability for fault software come from?

Answer 13

∙ the Sale of Goods and Supply Act, 1994
— goods must be fit for purpose

∙ the Supply of Goods and Services Act, 1982
— the supplier must take reasonable skill and care

∙ the Law of Negligence
— a duty of care must exist; that is, an individual can
reasonably foresee that their acts may injure someone

Question 14

What is the problem with Warranty?

Answer 14

Budgeting, because the amount of work is uncertain?

Question 15

∙ the Sale of Goods and Supply Act, 1994

Answer 15

— goods must be fit for purpose

Question 16

∙ the Supply of Goods and Services Act, 1982

Answer 16

— the supplier must take reasonable skill and care

Question 17

∙ the Law of Negligence

Answer 17

— a duty of care must exist; that is, an individual can

reasonably foresee that their acts may injure someone