In such a case, the client might want to restrict the developer for a reasonable amount of time from creating sites for the client's competitors. This can be accomplished through non-competition and confidentiality provisions. In the course of a long and expensive project, it might occur to a client to simply terminate the development agreement and hire away one of the developer's key employees to complete the work. Developers can contractually restrict the client from doing so. When a company depends on its website for a large portion of its business, then it can incur large losses when things do not go right.
Developers can contractually shield themselves from liability for such losses.
To avoid spending a lot of time and money resolving these issues, the parties should resolve these issues in advance in the agreement. Not all issues can be anticipated and covered in a website development agreement, especially given the speed at which the technology is changing. Nevertheless, both parties are best served when important issues are resolved early on. Mr. Galkin is an attorney in private practice. He is also the adjunct professor of Computer Law at the University of Maryland School of Law.