Founder guide

App development contract: what to include, and who owns the code

Last reviewed 3 November 2026

Most app disputes come down to things nobody wrote down: who owns the code, what “finished” means, and what happens when the work stops. A clear contract protects both sides. Here’s what to make sure it covers.

Short answer

Your contract should say in writing that the code and intellectual property become yours, that accounts stay in your company’s name, what’s being built, how payments tie to working milestones, how changes are handled, and what the developer hands over at the end. Have a lawyer in your country check it.

This is practical guidance from people who build apps, not legal advice. Laws differ by country, so have a lawyer check your contract.

Who owns the code?

Don’t assume that paying for the code makes it yours. In many countries, the person who writes it can own the rights unless a written agreement says otherwise. So make sure your contract states that:

All code, designs and other work made for the project are assigned to your company.
The transfer doesn’t wait for a final handover that may never come. Ask your lawyer about tying it to creation, or at least to each payment.
Anything they already owned and reuse is listed, and you get a licence to keep using it.
Open-source and third-party code is disclosed, along with any licence conditions.
Any subcontractors have signed the same terms, so the rights really reach you.

Keep the accounts in your name

A contract helps you win an argument. Holding the accounts means you may never have one. From day one, your company should own these, with the developer added as a user:

The code repository, on GitHub, GitLab or Bitbucket.
Your Apple Developer and Google Play accounts.
Hosting, cloud and database accounts, and their billing.
The domain name.
Payment and other paid services.

Other clauses to include

Scope. Attach a written list of features and platforms. Say what isn’t included too.
Milestones and payments. Link each payment to something you can check, such as a working feature on your phone, instead of a date.
What “done” means. How you’ll test each milestone, how long you have to test it, and how bugs get handled.
Changes. Changes are normal. Agree that the cost and timing impact is confirmed in writing before the work starts.
Regular access to the work. Code pushed to your repository regularly, and working builds you can try.
Handover. Source code, documentation, logins, keys and a walkthrough, whenever the work ends and for whatever reason.
Ending the contract. How either side can stop, what gets paid, and what you receive.
Confidentiality for your idea, data and customers.
Security and data. Who can access customer data, and what they must do if something goes wrong.
Support after launch. A period for fixing bugs, and what ongoing support would cost.
AI-generated code. Ask developers to tell you if they use AI tools, and to check the output. The law on ownership of AI-generated work is still developing, so ask your lawyer how to word this.

Warning signs in a contract

The developer keeps ownership until a far-off final payment, or keeps it altogether.
A large upfront payment with nothing tied to results.
Vague scope, such as “a mobile app as discussed”.
No mention of what happens to the code if the work stops.
Any resistance to putting accounts in your name.

If it’s too late for this project, and your developer has stopped replying, follow our developer disappeared checklist.

Questions founders ask

Can I use an app development contract template?

A template can be a useful starting point, and it helps you see what’s normally covered. Get it checked by a lawyer, since ownership rules vary between countries.

How much should I pay upfront?

There’s no standard amount. What matters most is that the upfront part is reasonable for the work starting now, and that later payments depend on things you can test.

What’s the difference between a proposal and a contract?

A proposal describes what the team plans to do and the price. The contract sets the legal terms, including ownership. Attach the agreed proposal to the contract so scope is covered in one place.