Ohio Checklist for Software Development Contract
Description
How to fill out Checklist For Software Development Contract?
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FAQ
The software development company may be required to compensate the client if the software they deliver causes harm or damage to the client's business. The indemnification clause would outline the conditions and circumstances under which the indemnifying party would be responsible for compensating the indemnified party.
?To indemnify? means to compensate someone for his/her harm or loss. In most contracts, an indemnification clause serves to compensate a party for harm or loss arising in connection with the other party's actions or failure to act. The intent is to shift liability away from one party, and on to the indemnifying party.
Intellectual property elements in a software development agreement include source code, graphic design, trade secrets, copywriting, and patents. The moment when the intellectual property rights are transferred between the parties should be clearly specified in the agreement.
Indemnification Clauses Usually, the SaaS agreement outlines the issues in which the SaaS vendor may have limited liability or may have to bear indemnity. Usually, indemnification clauses concern the damages caused to the third party. It is a standard part of software licensing agreements.
Well, ?indemnify? simply means ?to compensate for a loss.? For example, in a contract for engineering services, an indemnification clause might ask for compensation for damages caused by the engineer's professional negligence. This is typically acceptable since professional liability insurance covers that risk.
In an Indemnification Section Alternatively, the licensee is looking to be protected from third-party lawsuits for intellectual property infringement resulting from a situation where the licensor has intellectual property (typically software code) that infringes on the property of someone else (third-party claimant).