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Software Sales Agreement for Australia

Software Sales Agreement Template for Australia

A comprehensive legal agreement governed by Australian law that establishes the terms and conditions for the sale and licensing of software products. This document outlines the rights and obligations of both the software vendor and the purchaser, including licensing terms, payment conditions, delivery requirements, warranties, support services, and intellectual property rights. It incorporates Australian Consumer Law requirements and addresses specific obligations under Australian privacy and data protection regulations, while ensuring compliance with electronic transactions legislation and relevant state-specific requirements.

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What is a Software Sales Agreement?

The Software Sales Agreement is a critical commercial contract used when a software vendor wishes to sell and license their software products to customers in Australia. This agreement serves as the primary legal framework governing the relationship between the software provider and the purchaser, incorporating essential elements required under Australian law. It should be used whenever a business is selling software products, whether standard off-the-shelf solutions or customized applications. The document covers crucial aspects including license grants, usage rights, payment terms, service levels, warranties, and support obligations, while ensuring compliance with Australian Consumer Law, Privacy Act requirements, and relevant state legislation. The agreement is particularly important for protecting intellectual property rights and establishing clear boundaries for software usage and implementation.

What sections should be included in a Software Sales Agreement?

1. Parties: Identification of the parties to the agreement, including registered business names, ABNs, and addresses

2. Background: Context of the agreement, including brief description of the software and purpose of the agreement

3. Definitions: Key terms used throughout the agreement, including technical terms specific to the software

4. License Grant: Scope of software license, usage rights, and restrictions

5. Fees and Payment: Payment terms, pricing, invoicing, and payment methods

6. Delivery and Installation: Terms regarding software delivery, installation process, and acceptance criteria

7. Support and Maintenance: Overview of support services, maintenance, and updates provided

8. Intellectual Property Rights: IP ownership, protection, and related warranties

9. Warranties and Representations: Software performance warranties, compliance with specifications, and legal warranties

10. Limitation of Liability: Liability caps, exclusions, and risk allocation between parties

11. Confidentiality: Protection of confidential information and trade secrets

12. Term and Termination: Agreement duration, renewal terms, and termination rights

13. General Provisions: Standard legal provisions including governing law, dispute resolution, and notices

What sections are optional to include in a Software Sales Agreement?

1. Data Protection and Privacy: Specific section for software that handles personal data or requires compliance with privacy laws

2. Third-Party Software: Section addressing third-party components, open source software, and related obligations

3. Professional Services: For agreements including implementation, training, or consulting services

4. Service Level Agreement: For software with specific performance requirements or cloud-based solutions

5. Export Control: For software subject to international trade restrictions or export regulations

6. Disaster Recovery: For business-critical software requiring specific backup and recovery procedures

7. Security Requirements: For software handling sensitive data or requiring specific security protocols

What schedules should be included in a Software Sales Agreement?

1. Software Description: Detailed technical specifications and functionality of the software

2. License Fees: Detailed pricing structure, payment schedules, and any volume-based discounts

3. Support Services: Detailed description of support levels, response times, and escalation procedures

4. Service Level Agreement: Technical performance metrics, availability requirements, and remedies

5. Acceptance Testing: Testing procedures, acceptance criteria, and timeframes

6. Implementation Plan: Project timeline, milestones, and deliverables if implementation is included

7. Data Processing Terms: Detailed data handling procedures and compliance requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Australia

Publisher

Ƶ

Document Type

Sales Agreement

Sector

Cost

Free to use

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