12 SOFTWARE CONTRACTS AND LICENCES

After studying this chapter, you should:

  • understand the purpose of contracts in the computer industry and the different types of contractual arrangement that are commonly used;
  • be familiar with the main issues that such contracts address;
  • understand the different types of liability for defective software that can arise and the factors that affect these.

12.1 WHAT IS A CONTRACT?

A contract is simply an agreement between two or more persons (the parties to the contract) that can be enforced in a court of law. The parties involved may be legal persons or natural persons. There is no specific form for a contract; in particular, in England and Wales a contract need not be written down. The following are essential: ...

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