Separate Agreements For Software Purchase, Implementation

When companies buy specialized software and pay an expert to adapt it and set it up, there are two separate contracts with two very different warranties. For a purchase, typically by way of a license, the most a company can get if the software fails is the cost of the license. But if  the party that installs and implements the software fails in its obligations, it can be sued for damages. In a Today’s General Counsel Article, Holland & Knight attorneys Eduardo Ramos and Eric Ray explain why it’s crucial to keep these two contracts separate, and how, if this matter is handled incorrectly, the right to recover costs and damages can be lost.