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In this guide, we'll identify the contracts and legal documents you need when hiring a website developer. These documents can help protect your business from website legal issues, ensure compliance, and manage relationships with developers, designers, and service providers.
There are three groups of contracts we will discuss here:
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Contracts needed during the website creation phase.
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Contracts for running your website online and making it available to the public.
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Legal documents required to comply with disclosures and data protection requirements.
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Contracts for Hiring a Website Developer
Website Development Agreement
If you are dealing with a single person or an agency for the design, content, and hosting of your website, a Website Development Agreement can cover most of the contracts you need. This is typically a lengthy contract that may require the assistance of a lawyer to ensure it comprehensively addresses all aspects of the project, including timelines, deliverables, and ownership rights.
This agreement should cover all stages of development, from initial concept to final deployment, and should also address what happens if either party fails to meet their obligations. The more comprehensive the agreement, the fewer surprises there will be during the project.
Website Design Contract
If you are hiring website designers, you will need a Website Design Contract. Before entering into this contract, it is advisable to request a project proposal from your designer. This helps gauge their ability to carry out your website design project.
Your Website Design Contract should clearly outline the expected deliverables, including timelines for each phase of the project. Including a force majeure clause is also advisable. This clause can protect both parties by allowing for extensions or termination of the contract without liability in cases of events like natural disasters, wars, or other unforeseen circumstances.
Work-Made-for-Hire Contract and Transfer of Rights
If there are special elements, such as a logo or unique artwork, that you need the designer to create, it's advisable to have a separate work-made-for-hire contract. This ensures that you, as the client, retain ownership of the work, which is critical for copyright or trademark registration.
By default, under copyright law, the creator of a work retains ownership unless it is specifically created under a work-made-for-hire arrangement or by an employee in the scope of employment. If the work falls outside the scope of a work-made-for-hire contract, you can use a Transfer of Rights Agreement to acquire full ownership of what you paid for.
How to Draft Professional Services Agreements
Domain Name Purchase Agreement
To secure the rights to your desired domain name, you need a Domain Name Purchase Agreement. This agreement ensures you have the exclusive right to use the domain name.
Before purchasing a domain name, use a WHOis lookup tool (e.g., https://www.whois.com/) to verify that you are buying from the actual registrant and to prevent domain name fraud. The agreement serves as your legal basis to enforce your rights over the domain name if disputes arise.
Contracts for Running Your Website Online
Web Hosting Agreement
A Web Hosting Agreement is essential to formalize the arrangement with your hosting provider. This contract should address the scope of services, including server allocation, maintenance, security, and privacy.
The security clause is crucial, as you have an obligation to protect user data on your website. Ensure your web host outlines the security measures in place to prevent unauthorized data access.
Additionally, include a disclaimer clause that limits your liability if the web host misuses user data, such as by selling personal information to third parties. It's also advisable to avoid long-term contracts until you establish trust with your web host. Instead, consider short-term contracts with renewal options, and include provisions for smooth transition assistance should you switch providers.
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Website Linking License
A Website Linking License is important when allowing others to link to your website. This license can help you regulate the conduct of linkers and prevent unwanted associations, such as insinuations that you endorse harmful or illegal products. By using this license, you can disclaim liability for any negative outcomes resulting from links to your website.
Legal Documents for Disclosures and Data Protection
Website Terms and Conditions
Your Website Terms and Conditions set the ground rules for users, outlining acceptable behavior and limiting liability for damages. Key components include:
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Intellectual Property Protection: A copyright notice that prohibits unauthorized use of your content.
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Limitation of Liability: A clause limiting your liability for damages resulting from reliance on information provided on your website.
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Assignment Clause: Notice that you may transfer your rights over the website to a third party, such as during a sale. You should notify users and obtain consent if user data is included in the sale.
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Disclosure Notice: If you use cookies to collect information, you must specify what data is collected, how it is used, and how users can opt out. This ensures compliance with data privacy regulations, especially for users under 13 years old.
While the terms and conditions should be comprehensive, ensure they are not overly complex or intimidating. A user-friendly terms of use encourages more people to interact with your website.
Privacy Policy
Your Privacy Policy assures users that their information is secure and will not be sold to third parties. If you change your data management practices, you must inform users and obtain their consent to apply the new policies to their data.
If you use a third-party web host, ensure that they match your commitment to data security and consumer privacy and clearly state their security measures to prevent unauthorized access. This provision should also hold the host liable if they fail to adequately protect user data.
Terms of Sale
If you sell products on your website, you need a Terms of Sale document. This should include details such as shipping information, payment terms, warranties, and return policies. Clear terms help set user expectations and protect you in the event of disputes.
Do I need a business lawyer?
The biggest question now is, "Do I need a business lawyer?” For most businesses and in most cases, you don't need a lawyer to start your business. Instead, many business owners rely on Legal GPS Pro to help with legal issues.
Legal GPS Pro is your All-In-One Legal Toolkit for Businesses. Developed by top startup attorneys, Pro gives you access to 100+ expertly crafted templates including operating agreements, NDAs, and service agreements, and an interactive platform. All designed to protect your company and set it up for lasting success.
Legal GPS Pro
Protect your business with our complete legal subscription service, designed by top startup attorneys.
- ✅ Complete Legal Toolkit
- ✅ 100+ Editable Contracts
- ✅ Affordable Legal Guidance
- ✅ Custom Legal Status Report
Legal GPS Pro: All-in-One Legal Toolkit
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