A documented structure outlines the terms and conditions under which software is created by one party for another. It serves as a formal record detailing the scope of work, deliverables, timelines, payment schedules, intellectual property rights, and other critical aspects of the project. For instance, it may specify the functionality to be developed, the programming languages to be used, and the acceptance criteria the software must meet.
Such an arrangement provides legal protection for both the client and the developer. Its establishment helps to minimize misunderstandings, manage expectations, and prevent disputes that could arise during the project lifecycle. Historically, reliance on informal agreements in software projects led to numerous conflicts, highlighting the necessity of a well-defined and legally sound framework.