12 CONTRACTS AND LICENCES

After studying this chapter, you should:

  • understand what a contract is and how it comes into existence;
  • be aware of the different types of contract appropriate to different situations in IT;
  • understand the main issues that need to be addressed in the different types of IT contract;
  • be aware of contractual issues regarding liability for defective software.

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, Wales and Northern Ireland, a contract need not be written down, although ...

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