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Professional Practices Assignment 3

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11 views

Professional Practices Assignment 3

Uploaded by

aikdo3328
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Name: Zeeshan

Roll no: 006


Program: Bs (IT)
Semester: 8th
Section: A
Teacher: Khadija Tahira
Subject: Professional Practices
Course code: COMP410

Title: Discuss the Structure of custom built fix price software


contracts • Introductory section, set of standard terms and
conditions
Assignment: 3
A custom-built fixed-price software contract outlines the agreement between a software
development provider and a client for the delivery of a software project at a predetermined price.
The contract structure ensures clarity, sets expectations, and mitigates risks for both parties. Here’s
a detailed overview of the typical structure of such contracts, focusing on the introductory section
and the set of standard terms and conditions.
1. Introductory Section
The introductory section sets the stage for the contract. It generally includes:
• Title: Clearly stating the contract type, e.g., "Fixed-Price Software Development
Agreement".
• Parties Involved: Identifying the contracting parties, including legal names, addresses, and
primary contacts for both the client and the software development company.
• Effective Date: The date on which the contract becomes effective.
• Background: A brief context or purpose of the agreement, outlining the project goals and
the intent behind entering into this contract.
2. Standard Terms and Conditions
The standard terms and conditions section details the legal and operational framework of the
agreement. Key components include:
• Scope of Work (SoW):
• Detailed description of the deliverables.
• Milestones and timelines.
• Specific functionalities and features to be included in the software.
• Payment Terms:
• Total fixed price of the project.
• Payment schedule (e.g., upfront payment, milestones-based payments, final payment
upon completion).
• Payment methods and currency.
• Penalties for late payments.
• Change Management:
• Procedures for handling changes in project scope.
• Impact of changes on cost and timeline.
• Approval process for changes.
• Acceptance Criteria:
• Detailed criteria for deliverable acceptance.
• Testing and review processes.
• Client’s rights and timeframe to accept or request modifications.
• Warranties and Representations:
• Warranties regarding the performance and quality of the software.
• Representations about the legal authority to enter the contract.
• Intellectual Property Rights:
• Ownership of the software and related deliverables.
• Rights to use pre-existing materials or third-party components.
• Licensing terms if applicable.
• Confidentiality:
• Obligations of both parties to maintain confidentiality.
• Scope of confidential information.
• Duration of confidentiality obligations.
• Liabilities and Indemnities:
• Limits of liability for both parties.
• Indemnification clauses for potential losses or damages.
• Exclusions from liability.
• Termination:
• Conditions under which the contract can be terminated by either party.
• Consequences of termination (e.g., payment for work completed, return of
confidential information).
• Dispute Resolution:
• Mechanisms for resolving disputes (e.g., mediation, arbitration, legal action).
• Jurisdiction and governing law.
• Force Majeure:
• Definition of force majeure events.
• Procedures for dealing with such events and their impact on the project.
• Miscellaneous Provisions:
• Amendments and modifications to the contract.
• Assignment and delegation of rights or obligations.
• Entire agreement clause, ensuring the contract supersedes prior agreements.

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