Existence of a software development contract
<p>i have a question regarding software development contracts.</p>

<p>Take for instance two company, A and B whose primary business mainly involves the reconfiguring and resale of microcomputer system. </p>

<p>Company A and company B had a signed letter agreement which tasked company B to build a video editing system for company A. After the completion of the system, company B will have the rights to own one half interest in the software. </p>

<p>In such a situation, is it a normal contract or is it a software development contract.</p>

<p>Dale M is right. A SW Development Contract is just about the same thing as any other Development Contract - difference is that it's about SW development.So if Development Agreement is a "normal contract" a SW Development Agreement is also. </p>

<p>However, a Letter Agreement might not be considered as normal contract (or as binding as a "normal contract")- depends on its terms. It's normally used also as a "pre-agreement" where the Parties define the commonly agreed grounds of the business relationship. In your particular case, the Letter Agreement defines that the Software will be jointly owned by both A an B in equal shares - this is then the common overall understanding of the Parties, but more specific provisions would be in the Parties' benefit, e.g. does B also has licensing rights? will B be entitled to any compensation for each SW license granted by A as a result of its own (A) commercial efforts? </p>

contract-law