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IT Contracts

CONTRACTUAL ISSUES - INCLUDING LIMITS OF LIABILITY AND WARRANTIES. IT Contracts. 10 October 2001. Peter Brook Associate DLA India Buildings Water Street Liverpool L2 ONH Tel: 0151 237 4782 Fax: 0151 237 4890 E-mail: peter.brook@dla.com. David Worrall Solicitor DLA

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IT Contracts

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  1. CONTRACTUAL ISSUES - INCLUDING LIMITS OF LIABILITY AND WARRANTIES IT Contracts 10 October 2001

  2. Peter Brook Associate DLA India Buildings Water Street Liverpool L2 ONH Tel: 0151 237 4782 Fax: 0151 237 4890 E-mail: peter.brook@dla.com David Worrall Solicitor DLA India Buildings Water Street Liverpool L2 ONH Tel: 0151 237 4739 Fax: 0151 237 4890 E-mail: david.worrall@dla.com DLA – IT LAW FIRM OF THE YEARInsider's Guides to IT & Telecoms 2000

  3. Problem? What Problem? In a 5 year period: • 73% had problems with their computer system • 35% had system crashes • 60% had to to call back their suppliers

  4. Common Problems • Parties don't appreciate the complexity • Users fail to produce a proper specification • Vendors oversell • Requirements change during implemenation

  5. Contract or not to Contract • Contracting or not at the wrong time can cause problems • A contract is created • If an offer • Unconditionally accepted • Consideration • Intention

  6. Using your Lawyer Effectively • Early Instructions • Need not be expensive • Tender assessment

  7. Check What is in Writing • Question the contract • Tidy doesn't mean correct • Watch for entire agreement clauses

  8. What should go into the contract? • Detail • Certainty • Looking ahead

  9. Parties • Who should sign? • Associated companies?

  10. Rights in Software • Ownership? • Licence Terms? • Assignability • Restrictions

  11. Specification • As much thought and details as possible – worthwhile effort • Ensure warranties are given

  12. Staff • Ensure key individuals are named

  13. Timetable • Agree one!! • Specify reduction in price if late?

  14. Staged Payments • Use staged payments as an incentive

  15. Quality • Warranties as to quality, skill etc • Misuse of third party's rights

  16. Maintenance • Agree at the outset • As much detail as possible • Service levels, duration etc.

  17. Escrow • Place source code with independent third party ("Escrow") • Trigger release on e.g. insolvency

  18. Peter Brook Associate DLA India Buildings Water Street Liverpool L2 ONH Tel: 0151 237 4782 Fax: 0151 237 4890 E-mail: peter.brook@dla.com David Worrall Solicitor DLA India Buildings Water Street Liverpool L2 ONH Tel: 0151 237 4739 Fax: 0151 237 4890 E-mail: david.worrall@dla.com DLA – IT LAW FIRM OF THE YEARInsider's Guides to IT & Telecoms 2000

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