SOFTWARE DEVELOPMENT AGREEMENT

---
name: proposal-generation
description: When a founder needs to create a sales proposal, statement of work, contract, NDA, or master service agreement. Activate when the user mentions proposal, SOW, quote, contract, NDA, MSA, or needs to formalize a deal.
related: [sales-script, cold-outreach]
reads: [startup-context]

tags: [nontechnical, startup-founder-skills, proposal-generation, sales, grants]
-----|---------|
| Payment terms | Net-30, milestone-based, monthly retainer |
| IP ownership | Work-for-hire (US), assignment (EU/UK), Nutzungsrechte transfer (DACH) |
| Liability cap | 1x contract value (standard), 3x (high-risk) |
| Termination | For cause (14-day cure), convenience (30/60/90-day notice) |
| Confidentiality | 2-5 year term, perpetual for trade secrets |
| Dispute resolution | AAA (US), ICC (EU), LCIA (UK), DIS (DACH) |

### Jurisdiction-Specific Rules
- **US (Delaware):** Work-for-hire doctrine applies under Copyright Act 101. Arbitration via AAA Commercial Rules. Non-competes enforceable with reasonable scope/time.
- **EU (GDPR):** Must include Data Processing Addendum for any personal data. IP assignment may require separate written deed. Arbitration via ICC.
- **UK (post-Brexit):** Governed by English law. IP under Patents Act 1977 / CDPA 1988. UK GDPR applies. Arbitration via LCIA Rules.
- **DACH:** BGB governs contracts. Written form required for certain clauses (para 126 BGB). Authors retain moral rights — must explicitly transfer Nutzungsrechte. Non-competes max 2 years with compensation required (para 74 HGB). Include Schriftformklausel.

### Pricing Presentation Strategy
Present three tiers to anchor the prospect and make the middle option feel natural:

| | Starter | Recommended | Premium |
|---|---------|-------------|---------|
| Scope | Core deliverables | Core + integrations | Everything + custom work |
| Best for | Teams getting started | Most teams | Enterprise needs |
| Price | $X | $Y | $Z |

Always lead with value before cost. Show ROI math: "This investment of $X saves $Y, paying for itself in Z months."

### SOW-Specific Guidance
A Statement of Work is operational, not persuasive. Key sections:
- **Deliverables table** — Each deliverable gets a row: description, acceptance criteria, delivery date
- **RACI matrix** — Roles and responsibilities for each workstream
- **Change management** — How to handle scope changes and the approval process
- **Payment schedule** — Tied to milestones, not just calendar dates
- **Assumptions** — Conditions the timeline and price depend on

### Common Pitfalls
1. **Missing IP assignment language** — "Work for hire" alone is insufficient in EU; DACH needs explicit Nutzungsrechte transfer
2. **Vague acceptance criteria** — Always define what "accepted" means with written sign-off and rejection windows
3. **No change order process** — Scope creep kills fixed-price projects; add a clause for out-of-scope work
4. **Jurisdiction mismatch** — Choosing Delaware law for a German-only project creates enforcement problems
5. **Missing liability cap** — Without a cap, one bug could mean unlimited damages
6. **Oral amendments** — Always require written amendments signed by both parties

**Disclaimer:** Not a substitute for legal counsel. Use these as strong starting frameworks; review with an attorney for high-value or complex engagements.

## Related Skills
- `sales-script` — Use for the sales conversations that precede the proposal
- `cold-outreach` — Use to generate the initial conversations that lead to proposal-stage deals

## Examples

**Prompt:** "I need a fixed-price contract for a $45K web app project with a German client."

**Good output snippet:**
```
# SOFTWARE DEVELOPMENT AGREEMENT

Effective Date: [DATE]
Client: [CLIENT LEGAL NAME], [ADDRESS] ("Client")
Developer: [YOUR LEGAL NAME / COMPANY], [ADDRESS] ("Developer")

Governing Law: German law (BGB)
Arbitration: DIS Rules, [CITY]

## 2. PAYMENT
Total Fee: EUR 45,000

| Milestone | Amount | Due |
|-----------|--------|-----|
| Contract signing | 50% (EUR 22,500) | Upon execution |
| Beta delivery | 25% (EUR 11,250) | [DATE] |
| Final acceptance | 25% (EUR 11,250) | Within 5 days of acceptance |

## 3. INTELLECTUAL PROPERTY
Upon receipt of full payment, Developer assigns all Nutzungsrechte
(usage rights) in the Work Product to Client. Developer retains moral
rights per German copyright law (UrhG).
```