Chapter 12Key Factors in Software Contracts

Introduction

Quite similar to any other business transaction between two organizations, outsourced software projects require a formal contractual agreement between the buyer and the seller. Software contracts also include the usual sections such as scope of work, schedule, and deliverables, as well as other commercial terms and conditions common to contractual agreements. But what stands out in software contracts is the specific definition of the scope that describes the features and functions the user expects to be able to utilize.

As discussed in Chapter 1, because software is soft, defining exactly the scope of a software project is quite complex as compared to the manufacturing of a TV set. The ...

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