source code
Definition
Source code is the human-readable set of instructions that programmers write to build software or apps. Think of it as the recipe behind a piece of software that tells the computer exactly what to do and how to do it. Businesses often treat their source code as a valuable trade secret because it reveals how their software actually works.
Example
If you hire a developer to build a custom ordering system for your restaurant, the source code is the underlying written instructions that make that system run, and your contract should spell out clearly who owns it when the project is finished.
Watch Out
Many business owners assume they automatically own the source code for software they paid someone to build, but without a written agreement that transfers ownership, the developer may legally retain the rights to it.
See which terms appear in your contract?
This definition is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney for legal guidance.