What Is a Source Code Agreement?

A source code agreement is a legal document that lays out the terms and conditions between a software programmer and a client. Typically covered in this document is the software used by the developer, payment method, terms and conditions, restrictions, warranties, termination clause, indemnity, and written notice.

How to Create a Source Code Agreement

Build trust between you and the other entity by ensuring that you're actually doing the right thing with your source code agreements. To make sure you are, don't hesitate to go through our list of guidelines and tips on how to make your own source code agreement.

1. Negotiate with the other party

Every agreement should start with a discussion and negotiation between the entities involved, and a successful negotiation can yield an easier and better-written agreement. If an escrow is involved, both entities should agree to this decision and should be documented. As a matter of fact, it is actually advisable that you take notes of everything discussed during the negotiation, this can help build the body of the agreement.

2. Draft your source code agreement's content

Based on the details that you have taken down during your meeting with the representative from the other entity, you can start creating a draft of the source code agreement. Even if this is simply a draft, don't take this for granted and try to write this as professional and comprehensive as possible. To make your draft easier to read, you might want to use bullet points and focus on important keywords.

3. Encoding the document

Once you've done drafting your basic agreements content, you can start encoding the same content onto a word processing application. Depending on your preference, you have the option of using either Microsoft Word, Google Docs, or Apple Pages for encoding your source code agreement. Of course, you should start first with the header which includes the date, yours and the other party's address, and the name of the recipient.

4. Structuring the source code agreement

After encoding the header, you can start structuring the main body of the content starting with a paragraph that explains the purpose of the agreement. Without cluttering the layout, try to incorporate as much detail as you can in your simple agreement, outline the tasks and explain deadlines or timelines. Just like other agreements, make sure to also add a non-disclosure or confidentiality clause.

5. Sending the file or document for review

Before you decide to finalize your source code agreement, take the time to review everything from top to bottom to determine whether or not errors need to be corrected. Also, it might be best to send a copy of the formal document to the other entity for review, they might want to suggest revisions. However, make sure that you also agree with their suggestions before making any changes.

6. Finalizing your source code agreement

The last step in the process is finalizing your source code agreement and preparing to print copies for yourself and the other entity. After doing so, you and a representative from the other entity should affix your signatures on the document for legal purposes. Speaking of legal, you might also want to take things further by getting your source code agreement notarized.

Read More