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Custom Software Development Agreement

Custom Software Development Agreement Template for Malaysia

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Key Requirements PROMPT example:

Custom Software Development Agreement

"I need a Custom Software Development Agreement for a Malaysian fintech company developing a mobile payment application, with specific provisions for data privacy compliance and integration with third-party payment gateways, planned to launch in March 2025."

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Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓƵ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

alex.den.21@genieai.co
Relevant legal definitions





































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Relevant Industries

Information Technology

Financial Services

Healthcare

Manufacturing

Retail

E-commerce

Education

Telecommunications

Professional Services

Government and Public Sector

Logistics and Supply Chain

Media and Entertainment

Relevant Teams

Legal

Information Technology

Procurement

Finance

Project Management Office

Software Development

Quality Assurance

Information Security

Risk Management

Commercial Operations

Digital Transformation

Vendor Management

Relevant Roles

Chief Technology Officer

IT Director

Project Manager

Software Development Manager

Legal Counsel

Procurement Manager

Contract Manager

Business Development Manager

Solutions Architect

Technical Lead

Chief Information Officer

Head of Digital Transformation

Chief Legal Officer

Head of Procurement

Commercial Director

IT Operations Manager

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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