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Customer Development Agreement Template for India

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Key Requirements PROMPT example:

Customer Development Agreement

"I need a Customer Development Agreement for a mobile banking app development project starting March 2025, with special emphasis on data security compliance with RBI guidelines and incorporation of specific milestone-based payments."

Document background
The Customer Development Agreement is essential for businesses engaging external developers or development companies for software projects in India. This agreement type is specifically designed to comply with Indian legal requirements, including the Indian Contract Act, 1872, and Information Technology Act, 2000. It is typically used when a company needs bespoke software development services, establishing clear parameters for project execution, deliverables, and acceptance criteria. The document addresses key aspects such as intellectual property rights, confidentiality, payment terms, and project governance, while incorporating Indian-specific legal requirements and industry best practices. The Customer Development Agreement is particularly crucial for protecting both parties' interests in software development projects, ensuring clear accountability, and establishing robust project management frameworks.
Suggested Sections

1. Parties: Identification and details of the customer and development company

2. Background: Context of the agreement and brief description of the project objectives

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of development services to be provided

5. Project Management: Project governance, reporting structure, and communication protocols

6. Development Methodology: Description of development approach, sprint cycles, and delivery methodology

7. Acceptance Testing: Procedures for testing deliverables and acceptance criteria

8. Timeline and Milestones: Project schedule, key milestones, and delivery dates

9. Payment Terms: Fee structure, payment schedule, and invoicing terms

10. Intellectual Property Rights: Ownership and licensing of developed materials and pre-existing IP

11. Confidentiality: Protection of confidential information and trade secrets

12. Warranties and Representations: Warranties regarding services, deliverables, and compliance

13. Limitation of Liability: Limits on liability and exclusions

14. Term and Termination: Duration of agreement and termination provisions

15. General Provisions: Standard boilerplate clauses including governing law, notices, and dispute resolution

Optional Sections

1. Change Management: Procedures for handling change requests and scope modifications

2. Source Code Escrow: Terms for source code escrow arrangements if required for critical applications

3. Service Level Agreement: Specific performance metrics and service levels for maintenance phase

4. Security Requirements: Detailed security protocols and compliance requirements

5. Data Protection: Specific provisions for handling personal data and ensuring compliance with data protection laws

6. Third-Party Components: Terms regarding use and licensing of third-party software and components

7. Training and Knowledge Transfer: Provisions for training customer staff and documentation requirements

8. Disaster Recovery: Business continuity and disaster recovery procedures

9. Non-Solicitation: Restrictions on hiring each other's employees

Suggested Schedules

1. Schedule A - Technical Specifications: Detailed technical requirements and specifications of the deliverables

2. Schedule B - Project Plan: Detailed project timeline, resource allocation, and delivery schedule

3. Schedule C - Commercial Terms: Detailed breakdown of fees, payment milestones, and pricing structure

4. Schedule D - Acceptance Test Criteria: Detailed acceptance testing procedures and success criteria

5. Schedule E - Service Levels: Detailed service level requirements and performance metrics

6. Schedule F - Personnel: Key personnel assignments and roles for both parties

7. Appendix 1 - Change Request Template: Standard template for submitting and processing change requests

8. Appendix 2 - Progress Report Template: Standard format for progress reporting

9. Appendix 3 - Testing Documentation: Templates and procedures for testing documentation

Authors

Alex Denne

Head of Growth (Open Source Law) @ ¶¶Òõ¶ÌÊÓÆµ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions








































Clauses




































Relevant Industries

Information Technology

Software Development

Digital Services

E-commerce

Financial Services

Healthcare Technology

Manufacturing Technology

Retail Technology

Telecommunications

Educational Technology

Professional Services

Relevant Teams

Legal

Information Technology

Procurement

Finance

Product Development

Software Development

Project Management Office

Commercial

Risk Management

Information Security

Quality Assurance

Relevant Roles

Chief Technology Officer

Head of Digital

IT Director

Project Manager

Technical Program Manager

Procurement Manager

Legal Counsel

Contract Manager

Software Development Manager

Chief Information Officer

Head of Engineering

Product Owner

Business Analyst

Commercial Director

Chief Financial Officer

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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