The vendor's standard software license agreement is often one-sided. Once a user has identified its software needs, and identified a vendor and a product, the user will be presented with an agreement. The agreement should specify any limitations on the number of users, remote users, pricing for new users, and future products. The agreement should authorize copying the software for backup purposes. If a user has numerous or future sites, these sites should be specifically identified.
Many agreements provide ambiguous pricing terms.
Pricing should be simple and tied to specific milestones. Many agreements provide for a large payment at the time of execution and a final payment upon delivery. A better practice is to provide for final payment after installation and operation. Testing may require a substantial time commitment. The agreement should specify the criteria for testing, the types of data to be tested and the remedies if the software is not satisfactory.