Sometimes the software available on the market does not meet the needs of a business. In such circumstances, the business will either acquire a a license to use (see template I02200) this software that is not completely appropriate to meet its needs, or retain the services of a computer specialist to create customized software for its business.

While the first option costs less than the second, its use may lead to management and operations problems that could require considerable expense to resolve. Although initially more expensive, the second option will facilitate the company's management and operations, which will provide a better return in the long term. This template sets out the main elements of the legal and financial framework in the context of the second option, where a business retains the services of a third party to develop customized software.

We recommend using this template to provide the legal framework where a business wishes to retain the services of a professional specializing in computer analysis and programming to develop a software for commercial use in accordance with the specifications provided by the business, which will retain ownership thereof.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Application
0.01.04 Best Effort
0.01.05 Breach
0.01.06 Change in Control
0.01.07 Confidential Information
0.01.08 Encumber or Encumbrance
0.01.09 Event of Default
0.01.10 Force Majeure
0.01.11 Fundamental Provisions
0.01.12 Intellectual Property
0.01.13 Legal Representatives
0.01.14 Other’s Software
0.01.15 PARTY
0.01.16 Payment Schedule
0.01.17 Person
0.01.18 Prime Rate
0.01.19 Related Person
0.01.20 Schedule
0.01.21 Software
0.01.22 Specifications
0.01.23 Subsidiary
0.01.24 User Documentation
0.01.25 Work
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time and Dates
0.04.03 Financial References
0.04.04 References within Agreement
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 GAAP
1.00 PURPOSE
1.01 Work
1.02 Technical Support
1.03 Conditions
1.03.01 Required by CLIENT
1.03.02 Required by SUPPLIER
1.03.03 Choice
2.00 CONSIDERATION
2.01 Work
2.02 Adjustment
2.03 Technical Support
3.00 TERMS OF PAYMENT
3.01 Work
3.01.01 Deposit
3.01.02 Balance
3.02 Technical Support
3.03 Interest
3.04 Loss of Term
4.00 SECURITY
4.01 In favour of CLIENT
4.02 In favour of SUPPLIER
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF THE CLIENT
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Insurance
6.05 Nominee
6.06 Fundamental Provisions
6.07 Disclosure
6.08 Exportation
7.00 REPRESENTATIONS AND WARRANTIES OF THE SUPPLIER
7.01 Status
7.02 Authority
7.03 Binding Agreement
7.04 Insurance
7.05 Nominee
7.06 Fundamental Provisions
7.07 Disclosure
7.08 Resources
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Issuer
8.02.04 Co-insured
8.02.05 No Limitation
8.03 Indemnification
8.03.01 “Loss”
8.03.02 Scope
8.03.03 Procedure
8.03.04 Deductible
8.03.05 Limitation on Claims
8.04 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF THE CLIENT
9.01 Information
9.02 Contact Person
9.03 Operator
9.04 Master File Data
9.05 Non-solicitation of Staff
9.06 Reverse Engineering
9.07 Liability
10.00 DUTIES AND OBLIGATIONS OF THE SUPPLIE
10.01 Schedule
10.02 Best Effort
10.03 Collect and Analysis
10.04 Documentation
10.05 Installation and Start-up
10.05.01 Delivery
10.05.02 Installation
10.05.03 Training
10.05.04 Start-up Schedule
10.05.05 Notice
10.05.06 Telephone Service
10.06 Technical Support
10.06.01 Undertaking
10.06.02 Costs
10.07 Warranty
10.07.01 Imperfection
10.07.02 Exclusion
10.07.03 Liability
10.08 Non-solicitation of Clientele
10.09 Intellectual Property
10.09.01 Transfer
10.09.02 Exception
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Relationship
11.03.01 Independent Contractors
11.03.02 No Control over Performance
11.03.03 No Authority to Bind
11.04 Further Assurances
11.05 Other Remedies
11.05.01 Choices
11.05.02 No Limitations
11.06 Prescription
11.07 Intellectual Property
11.08 Intellectual Property Management
11.08.01 Acknowledgement and Assignment
11.08.02 Right of Ownership
11.08.03 Source Code
11.08.04 Licence Agreement
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Unilateral Termination
13.03 With FIVE (5) Days’ Prior Notice
13.04 Prior Notice
13.05 Change in Control
14.00 EFFECTIVE DATE
14.01 Retroactivity
14.02 Execution
14.03 Deferral
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial Term
15.03 Renewal
15.03.01 First Renewal
15.03.02 Subsequent Renewals
15.04 Survival
15.05 Non Renewal
16.00 SCOPE


SCHEDULE A - EXCERPT OF A RESOLUTION OF THE SUPPLIER
SCHEDULE B - EXCERPT OF A RESOLUTION OF THE SUPPLIER
SCHEDULE 0.01.14 – SOFTWARE USED IN THE PERFORMANCE OF THE WORK
SCHEDULE 0.01.16 – PAYMENT SCHEDULE
SCHEDULE 0.01.19 - SCHEDULE
SCHEDULE 0.01.22 - SPECIFICATIONS
SCHEDULE 1.02 – TECHNICAL SUPPORT PRICING