A contract is a legally binding agreement, but unless the contract terms are in writing, it may be difficult to prove what those terms are in the event of a conflict.
All businesses should set out their general terms of business, which should be tailored to suit that particular organisation, in a standard document of Terms and Conditions of Trade.
If it is decided that a negotiated contract is necessary, many issues will need to be addressed, such as firm delivery dates, warranties that the product will operate to certain standards, acceptance test provisions, and any copyright ownership issues.
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