Software Sales Agreement for the United Kingdom

Software Sales Agreement Template for England and Wales

A Software Sales Agreement is a legally binding contract governed by English and Welsh law that establishes the terms and conditions for the sale and licensing of software products. It covers essential aspects including license terms, usage rights, warranties, support services, intellectual property protection, and payment terms. The agreement ensures compliance with UK technology and data protection legislation while protecting both the vendor's intellectual property rights and the customer's interests.

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What is a Software Sales Agreement?

The Software Sales Agreement is designed for use in England and Wales when a software vendor wishes to sell or license their software products to customers. This comprehensive agreement addresses crucial aspects of software transactions, including licensing terms, implementation requirements, maintenance provisions, and compliance with UK data protection laws. It provides essential protection for both parties by clearly defining rights, obligations, and remedies while ensuring alignment with relevant technology legislation and industry standards.

What sections should be included in a Software Sales Agreement?

1. Parties: Identification and details of the contracting parties including registered addresses and company numbers

2. Background: Context of the agreement, including brief description of the software and purpose of the agreement

3. Definitions: Key terms used throughout the agreement including Software, Documentation, Intellectual Property Rights, etc.

4. License Grant: Scope and terms of software license, including usage restrictions and permitted users

5. Payment Terms: Pricing, payment schedule, invoicing terms and conditions including late payment provisions

6. Delivery and Installation: Terms regarding software delivery, installation requirements and acceptance testing

7. Intellectual Property Rights: Ownership and protection of IP, including third-party rights and infringement provisions

8. Warranties: Software warranties, performance guarantees and disclaimer of warranties

9. Limitation of Liability: Liability caps, exclusions and indemnification provisions

10. Term and Termination: Duration of agreement, renewal terms and termination rights

11. Confidentiality: Protection of confidential information and trade secrets

12. General Provisions: Standard boilerplate clauses including governing law, notices, and assignment

What sections are optional to include in a Software Sales Agreement?

1. Professional Services: Additional implementation, configuration, and training services when provided beyond basic software

2. Service Level Agreement: Performance metrics, support levels, and response times for ongoing maintenance

3. Data Processing Agreement: Specific terms for handling personal data under UK GDPR when software processes personal data

4. Change Control: Process for managing changes to software or services in complex implementations

5. Source Code Escrow: Terms for source code escrow arrangements when agreed between parties

What schedules should be included in a Software Sales Agreement?

1. Schedule 1 - Software Description: Detailed specifications of the software, including features and functionality

2. Schedule 2 - Price List: Detailed pricing information, payment schedule and any volume discounts

3. Schedule 3 - Service Level Agreement: Detailed support and maintenance terms, including response times and service credits

4. Schedule 4 - Technical Requirements: Hardware, system and network requirements for software operation

5. Schedule 5 - Acceptance Testing: Testing criteria, procedures and acceptance sign-off requirements

6. Schedule 6 - Data Processing Terms: Detailed data protection obligations and processing requirements under UK GDPR

Authors

Alex Denne

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

Jurisdiction

England and Wales

Publisher

Genie AI

Document Type

Sale Agreement

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Consumer Rights Act 2015: Primary legislation for B2C transactions, covering quality requirements, fitness for purpose, consumer remedies, and specific digital content provisions

Sale of Goods Act 1979: Key legislation for B2B transactions, governing implied terms about quality, fitness, title and possession

Supply of Goods and Services Act 1982: Covers service elements of software implementation, including requirements for reasonable care and skill

Data Protection Act 2018 & UK GDPR: Governs data processing requirements, data security obligations, and cross-border data transfers

Copyright, Designs and Patents Act 1988: Regulates software copyright protection, licensing provisions, and intellectual property rights

Electronic Commerce (EC Directive) Regulations 2002: Covers online sales requirements, information provision obligations, and electronic contracting rules

Unfair Contract Terms Act 1977: Governs limitation of liability, reasonableness of terms, and exclusion clauses in contracts

Competition Act 1998: Addresses anti-competitive provisions and market dominance considerations

Computer Misuse Act 1990: Covers security requirements and unauthorized access provisions

Electronic Commerce (Amendment etc.) (EU Exit) Regulations 2019: Post-Brexit modifications to e-commerce rules and regulations

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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