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Computer Contracts: Unit - 2

Computer contracts are written agreements that are legally enforceable. They are needed because of differences in computer knowledge between IT professionals and clients. Contracts protect both parties if problems occur and create legally binding duties. Key terms of contracts include express terms that are specifically agreed to and implied terms that are necessary for the contract to make commercial sense. Contracts can cover sale of goods, services, software and hardware acquisition. Breach of contract occurs if conditions or warranties are not met. Misrepresentation, defective products, and negligence can also result in legal liabilities.

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NikhilGupta
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52 views

Computer Contracts: Unit - 2

Computer contracts are written agreements that are legally enforceable. They are needed because of differences in computer knowledge between IT professionals and clients. Contracts protect both parties if problems occur and create legally binding duties. Key terms of contracts include express terms that are specifically agreed to and implied terms that are necessary for the contract to make commercial sense. Contracts can cover sale of goods, services, software and hardware acquisition. Breach of contract occurs if conditions or warranties are not met. Misrepresentation, defective products, and negligence can also result in legal liabilities.

Uploaded by

NikhilGupta
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Computer Contracts

UNIT – 2
Contract
A written or spoken agreement,
especially one concerning employment,
sales, or tenancy, that is intended to be
enforceable by law.

Computer Contract
License agreement which we agree
during installation of a software. Few
softwares have paid licensing which is
called a contract in computer world.
What is the need for the contract?
• Difference in computer knowledge of IT
professional or advisors and the clients
• It protects both the client and the supplier when a
problem occurs.
• It is a mutual agreement by which the parties
create enforceable duties or obligations that are
legally binding. That is each party is obligated to
do or to refrain from doing certain acts
Fundamentals of
computer contracts
Terms of the Contract
Term : Any provision forming part of a contract

There are two terms associated with a contract, they are:


• Express terms : Express terms are terms that have been
specifically mentioned and agreed by both parties at the time
the contract is made. They can either be oral or in writing.

• Implied Terms : Sometimes a term which has not been


mentioned by either party will nonetheless be ‘included’ in the
contract, often because the contract doesn’t make commercial
sense without that term. Terms like this are called implied terms.
Nature of the Contract

• Sale of Goods contract


• Service Contract
Software and Hardware Acquisition
• Most common method in software acquisition –
licence granted by the copyright owner.
 Exclusive (Licence is given to one user) and non-
exclusive(the owner is free to grant any number
of users) licence
 Assignment of a copyright – transfer of
ownership of copyrights from writer to publisher.

• Most common method in hardware acquisition –


Supply and Sale of goods.
Breach of Contract
• Two terms which determine breach are: “Conditions” and
“warranties”.
• A term may be a pre-condition to formation of the contract (a
condition precedent) or a pre-condition to performance (a
condition subsequent).
• A warranty is a term collateral to the main purpose of the
contract.
Misrepresentation
A misrepresentation is an untrue statement of fact that
induces a party to enter a contract.

There are three types of misrepresentation, they are:


• Fraudulent - occurs when a party to a contract
knowingly makes an untrue statement
• Negligent – occurs if the sales person doesn’t disclose
the entire detail to the customer
• Innocent – occurs if the sales person is not aware of the
updates or changes
Remedy – Rescission of contract and damage charges
Liabilities for
defective hardware
or software
Liability : The state of being legally obliged and
responsible.

If a person suffers a loss or a damage the


following areas of law might provide some
remedy:
• Contract
• Law of negligence
• Negligent misstatement
• Product liability
Negligence
• Negligence is a part of an area of law known as tort. Tort
is a civil wrong independent of contract.
• It imposes legal liabilities on a person who has acted
carelessly or omits to do something which was necessary.
• To be able to sue in negligence three ingredients are
required:
 A duty of care owed to the injured party
 A breach of that duty of care
 Consequential loss-that is, loss which is direct and
natural result of breach of duty of care

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