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Need review of Service Agreement for App Development Project.


21-Apr-2025 (In Corporate Law)
I’m developing a Punjabi language learning app and received a service agreement from the app development company. I want to ensure we have proper clauses for IP ownership transfer, post-launch support, penalties for delay, indemnification, and content/data handling. Can you review the agreement and advise on key protections we should include or revise? Also, is 18% interest on late payments standard in India?
Answers (1)

Answer #1
530 votes
You should ensure the service agreement includes clear clauses for full transfer of intellectual property rights (including source code and content), defined post-launch support with timelines, penalties for project delays, indemnification for IP infringement or data breaches, and strict confidentiality and data handling provisions. The agreement must also cover user acceptance testing, termination rights, and dispute resolution (preferably arbitration). An 18% annual interest on delayed payments is standard and enforceable in India if clearly stated. It’s advisable to review the exact terms in the agreement to ensure your rights are fully protected before signing.
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