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PLAYBOOK TEMPLATES

Software Development Agreement

A Software Development Agreement governs custom software creation, specifying scope, milestones, and IP ownership. This playbook highlights negotiation on deliverables, acceptance testing, and post-delivery warranties.

Liability & Indemnification

Why This Matters: Uncapped or poorly defined liability can expose the organization to devastating financial losses, while clear limits and procedures protect against unpredictable damages.

Negotiation strategy

If you're the Company:

Negotiate for clear liability caps and ensure indemnification obligations are reciprocal. Include carve-outs for willful misconduct to protect against excessive risk.

If you're the Developer:

Aim to limit liability exposure by negotiating reasonable caps. Ensure indemnification is balanced and includes necessary carve-outs for specific risks.

Essential elements

1

Limitation of Liability

Caps on financial exposure.
2

Indemnification Scope

Coverage for breaches and claims.
3

Claim Notification

Procedure for notifying claims.

Action framework

ACCEPT

Propose edits when liability caps are too high or indemnification is not reciprocal.

EDIT

Reject clauses that expose to unlimited liability or lack necessary carve-outs.

ADD

Add clauses for reciprocal indemnities and clear claim procedures.

PRO TIP

Always ensure liability caps are aligned with your organization's risk tolerance and industry standards.

Example clauses

FAVORABLE

Balanced Liability Clause

"Except as otherwise provided herein, in no event shall either party be liable to the other for any indirect, incidental, consequential, special, or punitive damages..."
NEUTRAL

Standard Indemnity Clause

"Each party agrees to indemnify the other party against any claims arising from the indemnifying party's breach of representations and warranties..."
UNFAVORABLE

Unlimited Liability Exposure

"The Contractor shall be liable for all damages, without limitation, arising from any breach of this Agreement..."

Fallbacks

High-Risk Jurisdictions

In jurisdictions with high litigation risk, additional legal review is needed to ensure compliance and mitigate potential liabilities.

Technology Contracts

For tech contracts, ensure IP infringement is specifically covered under indemnification to protect proprietary assets.

Cross-Border Agreements

Cross-border agreements may require tailored indemnity clauses to address varying legal standards and enforcement challenges.
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