A legally binding document that outlines the terms and conditions under which software is sold or licensed from a vendor to a customer. It details aspects such as permitted use, licensing fees, support, maintenance, warranties, and liabilities. For example, such an agreement might specify the number of users authorized to access the software, the geographical regions where it can be used, and the vendor’s obligations to provide updates or technical assistance.
The importance of such a document lies in establishing clear expectations and protecting the rights of both the software vendor and the customer. It provides a framework for the relationship, minimizing the potential for disputes and ensuring that each party understands its responsibilities. Historically, these documents have evolved alongside the software industry, adapting to new licensing models like SaaS and open-source solutions, reflecting changing business practices and legal precedents.
