App Development Contract: 10 Clauses to Check Before You Sign

An app development contract does more to protect your money than any amount of vetting. Most disputes between founders and developers come down to things the agreement left vague: what was included, who owns the code, when payments are due and what happens when something breaks. This checklist covers the ten clauses we think every founder should read carefully. It isn't legal advice; have a lawyer review anything significant before you sign.

The 10 clauses to check

1. Intellectual property and code ownership

The contract should state that all code, designs and other work created for you are assigned to your company, typically on payment. Watch for clauses where the developer keeps ownership and grants you a license, and ask about any pre-existing code or libraries they reuse.

2. Scope of work

Features, user roles, platforms and integrations should be listed in writing, ideally in an attached scope document. "An app like X" is not a scope.

3. Milestones and acceptance

Each milestone should say what will be delivered and how you'll test and accept it, with a reasonable review period.

4. Payment terms

Payments should follow accepted milestones rather than calendar dates. Be wary of large upfront payments before any working software exists.

5. Change requests

Scope will change. The contract should explain how changes are requested, priced and approved before work on them starts.

6. Timeline and delays

Look for target dates per milestone and what happens if they slip, including delays caused by you, such as late feedback or content.

7. Warranty, bug fixes and guarantees

How long after launch will defects be fixed at no cost? Is there any money-back guarantee? Get the specifics, including what counts as a bug versus a new feature.

8. Confidentiality

The developer should keep your business information and data confidential, during and after the project.

9. Accounts, credentials and handover

App store accounts, the code repository, hosting and domains should be in your company's name, with the developer given access. On completion or termination, everything should be handed over with documentation.

10. Termination

If either side ends the agreement, what do you pay for, and what do you receive? You should always leave with the work you've paid for.

How these map to the Synaptix engagement

• Ownership: you own 100% of the code.
• Scope and price: fixed in the $299 Technical MVP Blueprint before the build starts.
• Payments: per milestone, never for one you haven't approved.
• Support: 30 days of post-launch fixes included with every build.
• Guarantee: if you don't like the product within 30 days after launch, you get all the money you paid for development back.

Common contract mistakes founders make

• Signing a proposal instead of a contract, with no IP clause at all.
• Accepting "a mobile app like Uber" as the scope.
• Agreeing to pay most of the fee upfront.
• Letting the developer register the app store accounts.
• No definition of done for milestones, so acceptance becomes an argument.
• No termination clause, so leaving means losing the work.

Questions to ask before signing

1. What exactly do I receive at each milestone, and how do I accept it?
2. When does ownership of the code transfer to me?
3. How are changes priced?
4. How long are bugs fixed for free after launch?
5. What do I get if we part ways halfway?