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SY003. SYSTEMS SALES AGREEMENT (incorporating a nonexclusive, nontransferable Software License)

Every computer system contains software for its operation, be it operating system software or some application supplied with the system. The best contractual manner of protecting software is with a software license which should be signed prior to or upon delivery (but prior to use) of the software.

Many application programs are now supplied under a "shrink wrap" license which, although not the best form of binding contract, does nevertheless notify the purchaser of a computer system that that particular software at least is under license.

However, operating system software is rarely subject to a separate license nor is it always possible to have the particular software license relating to the chosen system available at the time of selling a computer system. Therefore, in an endeavour to give some degree of license protection to operating system software and application programs supplied or indeed already installed on a computer system at the time of its sale, it is prudent for the supplier to have a form of license incorporated in the sales agreement as a failsafe.
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