IT Contract Samples - Documenting the terms
Author: Pete Bennett Date: January 20th 2013
Walnut Creek CA: Software and Information Technology (IT) Contracts for small providers should cover services, products, supply of ongoing services where merchantability terms and conditions should be spelled out, Intellectual Property rights, transfers, patents, and the all being, all seeing omnipotent part - Limitations of Liability where the great seekers of damages seek to take from your pocket to theirs.
Product contracts - License, Warranties -protecting the buyer and the seller are bound by terms that cannot be distorted, misconstrued or ambiguous by either party. An important element for ongoing work that once the client signs off the work is considered accepted "as is" as the client based on the terms not to sign the contract programmers time sheet but the agency is under California Law required to pay. This is that spot where the IT Manager ducks, the agency points fingers and the consultant can get burned. In 2001 the agency I was working under was behind by $20,000 in payment but it was clear no dough was flowing. I was forced to stop which was the right move as the Agency filed for bankruptcy a few weeks later. That was a damned if you do or don't deal.
That rule applied way back in the 80's working for general contractors and there are days I wonder which business is more flaky as I got a compliment (Jan 2013) at Starbucks when this lady recognized me goes "Wow it's Pete Bennett, you built that cabinet for us in 1983" I said did the doors ever fall off? She said everyone notices and I tell everyone. Great satisfaction but she didn't reveal her name but it a few days but I remembered her voice but the reason I couldn't remember it was one of jobs where I never saw the final installation.
When contracting you need to have a contract that will not wither in the wind, you have to have a court system that works (more later) and you need reasonable counsel.
Coming Next:
The simple contract - pay me now as we go
The Complex Contract 101 - easy to review by counsel
The Endlessly Laden with Terms 16 page long - you should by then have a staff attorney and can afford one
T
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