The Custom Software Development Agreement is essential for businesses commissioning bespoke software solutions in Malaysia. It serves as a comprehensive legal framework that protects both the developer's and client's interests while ensuring compliance with Malaysian legislation, including the Contracts Act 1950 and relevant technology laws. This document is particularly crucial when organizations require tailored software solutions that aren't available off-the-shelf, providing detailed specifications for development methodology, acceptance criteria, intellectual property rights, and payment structures. The agreement typically includes technical specifications, project timelines, and service level requirements as schedules, making it adaptable to various project scales and complexities while maintaining legal enforceability under Malaysian jurisdiction.
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1. Parties: Identification of the developer and client, including full legal names, registration numbers, and registered addresses
2. Background: Context of the agreement, including brief description of client's business and software development needs
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of the software development services to be provided
5. Project Methodology: Development methodology, phases, and project management approach
6. Developer Obligations: Key responsibilities and commitments of the developer
7. Client Obligations: Key responsibilities and commitments of the client, including provision of materials and approvals
8. Acceptance Testing: Procedures for testing deliverables and acceptance criteria
9. Changes and Modifications: Process for requesting and implementing changes to requirements or specifications
10. Intellectual Property Rights: Ownership and licensing of pre-existing and newly created intellectual property
11. Fees and Payment: Payment terms, fee structure, and payment schedule
12. Warranties: Warranties provided by both parties, especially regarding software quality and performance
13. Confidentiality: Protection of confidential information exchanged during the project
14. Limitation of Liability: Limitations on liability and exclusions of certain types of damages
15. Term and Termination: Duration of agreement and circumstances for termination
16. General Provisions: Standard legal provisions including governing law, dispute resolution, and entire agreement
1. Third-Party Components: Terms regarding use of third-party software components, to be included if the solution incorporates third-party tools or libraries
2. Hosting Services: Terms regarding hosting arrangements, if the developer will provide hosting services
3. Service Level Agreement: Performance metrics and service levels, if ongoing support is included
4. Data Protection: Specific data protection obligations, if personal data processing is involved
5. Source Code Escrow: Terms for source code escrow arrangements, if required by the client
6. Training and Documentation: Terms regarding user training and documentation, if included in scope
7. Non-Solicitation: Restrictions on hiring each other's employees, if desired
8. Insurance: Insurance requirements, if specific coverage is required
1. Schedule 1 - Software Requirements Specification: Detailed technical specifications and functional requirements of the software
2. Schedule 2 - Project Timeline and Milestones: Detailed project schedule, deliverables, and milestone dates
3. Schedule 3 - Acceptance Test Criteria: Detailed acceptance testing procedures and success criteria
4. Schedule 4 - Fee Schedule: Detailed breakdown of fees, payment milestones, and rates
5. Schedule 5 - Service Levels: Detailed service level requirements and metrics, if applicable
6. Schedule 6 - Technical Architecture: Overview of system architecture, components, and technical stack
7. Appendix A - Change Request Template: Standard form for submitting and approving change requests
8. Appendix B - Contact Details: Key contact persons and escalation matrix for both parties
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