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Information technology contracts are subject to the same statutes and principles of common law as any other lawful contract. There are, however, several unique features of information technology contracts which have compelled the courts to give such contracts special legal consideration.

This is largely due to the often intangible nature of the information technology world, with products and data frequently being nothing more than a series of binary instructions stored in digital form. This peculiar characteristic requires delicate thinking as far as the law is concerned, but it is still the case that many issues remain unresolved or are ongoing, with both the courts and legislation striving to keep pace with rapid progression and the fine details of technological jargon.

As in other areas the law regarding information technology contracts has its own needs and desires. The courts are playing an increasing role in determining the application of statutes such as the Sale of Goods Act and the Supply of Goods and Services Act to information technology contracts.

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It is important, then, to consider where the law is most active. There are three main spheres: The law takes the view that contracts for the acquisition of software are not sales of goods contracts.

This is important in determining what legislation is applicable.

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Generally, contracts to acquire software do bank of thailand exchange rates transfer copyright or other intellectual property rights. Additionally, computer programs cannot, in the legal sense, be goods. Having said that, a parallel sale divorce trading binary options free trial goods contract might exist if the software is provided, for example, on an optical disc as opposed to being downloaded.

The optical disc, as distinct from the software on it, would be subject to sale of goods law being fit for purpose, and so on and could be returned if, for example, asx trading hours today was badly scratched and consequently could forex rates in kampala today be read by an optical disc drive.

An illustrative case is Ashley v Sutton London Borough Council [].

Though this case concerned mail-order books and not software the approach taken by the court is of great value when dealing with software contracts. The court held that the appellant, Ashley, was, for the purposes of s14 of the Trade Descriptions Act, engaged in a contract for providing services, namely the service of providing gambling information in a book.

The book itself was merely a conduit used to impart the information which the purchasers divorce trading binary options free trial the book put great value on and was ultimately what they wanted to receiveso the contract was not a sale of goods contract a book being within the definition of goods. In other words, the customers wanted the information, not the book.

This seems to be the most satisfactory approach as far as software contracts are concerned. The customer ultimately wants the program, so its means of delivery are irrelevant. Consequently, they must be services, subject to the relevant law, and so must, for example, be provided with reasonable skill and care.

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Home Contract Law Information Technology Contracts.

Information Technology Contracts A Background to IT Contracts Information technology contracts are subject to the same statutes and principles of common law as any other lawful contract. Software contracts The law takes the view that contracts for the acquisition of software are not sales of goods contracts. Want to read more? Unlock this article now! For more information on: Software acquisition Implied terms in the Supply of Goods and Services Act Hardware acquisition.