Functionality

The "Functionality" clause in a contract outlines the specific features and capabilities that a product or service must deliver according to agreed standards. It ensures that any deviations from these stated functionalities allow for remedies, such as corrections or compensation, to uphold the contract's integrity.

5 Functionality examples

  • Description
    Products with Online Functionality   For our software products that include both offline functionality (i.e., do not require an Internet connection to access) and significant online functionality, such as for most of our titles from the Call of Duty franchise, we evaluate whether the license of our intellectual property and the online functionality each represent separate and distinct performance obligations is distinct and separable. In such instances, we typically have two performance obligations: (1) a license to the game software that is accessible without an Internet connection (predominantly the offline single player campaign or game mode) and (2) ongoing activities associated with the online components of the game, such as content updates, hosting of online content and gameplay, and online matchmaking (the “online functionality”). The online functionality generally operates to support the additional features and functionalities of the game that are only available online, not the offline license. This evaluation is performed for each software product or product add-on, including downloadable content. When we determine that our software products contain a license of intellectual property (i.e. the offline software license) that is separate and distinct from the online functionality, we consider market conditions and other observable inputs to estimate the transaction standalone selling price for the performance obligations license, since we do not generally sell the software license on a standalone basis. These products may be sold in a bundle with other products and services, which often results in the recognition of additional performance obligations.
    Document
    Activision Blizzard, Inc.
  • Description
    Media Curation Functionality and Photo Editing Client Software” means the functionality to create [****]. In addition, the following features are supported by the Media Curation Functionality and Photo Editing Client Software but have not been [****] for access and use within the Solution (“[****] Features”): oCamera view with Photo, Video and animation capture. oAugmented reality camera with included 3D models.  oPhoto scanner.
    Document
    SYNCHRONOSS TECHNOLOGIES INC (SNCR, SNCRL)
  • Description
    Where elements of the Media Curation Functionality and Photo Editing are configurable as to when and how offered to Subscribers, Verizon shall [****] the supported configuration for use of the Media Curation Functionality and Photo Editing.
    Document
    SYNCHRONOSS TECHNOLOGIES INC (SNCR, SNCRL)
  • Description
    For the purpose of clarity: (a) a location on a map, origin or destination may include a Point of Interest (“POI”); and (b) Map and Route Only Functionality may include real-time tracking of vehicle position along a Route or bread-crumbing along a Route. Except as expressly set forth above, Map and Route Only Functionality shall not include any other functionality, including without limitation, Real-Time Route Guidance.
    Document
    Telenav, Inc.
  • Description
    Emerald Interdependent Functionality The high level of interaction that occurs on a near real-time basis between the on-premise software and the NCR Cloud creates the functionalities that are essential to our promise to, and the expectations of, Emerald customers. It is only through this interactivity that we fulfill what we have promised to the customer, and the customer can realize its intended benefit from the offering. Pursuant to the guidance in ASC 606-10-25-21(a), we believe the nature of Emerald’s combined output is more than simply the sum of two or more independent goods or services (i.e. some licenses and a suite of complementary cloud-based features) that happen to be purchased in the same contract. In order to provide the system functionalities integral to our promised solution to the customer, Emerald relies upon critical operational and financial data (e.g., transaction log data, new promotions, price changes, online orders, etc.) flowing in both directions on a near real-time basis between the on-premise software and the NCR Cloud. Working across interfaces, across devices, across stores, all while accessing the significant services and functions promised with the offering, would not be possible without ongoing communication and interaction between the cloud-based features of Emerald hosted in NCR Cloud and the on-premise software. Emerald cannot deliver on the customer’s fundamental expectations without this continuous, bidirectional data flow between the retailer’s stores and the NCR Cloud.
    Document
    NCR CORP (VYX, NCRRP)

What is Functionality clause?

Functionality refers to the range of operations that can be run on a computer or a program. It defines what specific tasks a software application, system, or piece of technology can perform. Functionality includes all the actions and services that the software is designed to offer, ensuring that it meets the intended needs of its users or stakeholders. It can vary significantly across different applications, ranging from simple calculations to complex data processing tasks.

When should I use Functionality clause?

Functionality should be leveraged when you need a software application to perform specific actions or provide certain services that fulfill tasks or solve problems. It’s crucial during:

  • Software Development: When designing and coding new applications, you need to clearly define and implement required functionalities.
  • Project Management: Understanding functionalities is key when managing project scope and timelines, ensuring that all necessary features are included.
  • User Needs Assessment: When gathering requirements from users, you rely on listing desired functionalities.
  • Software Testing: Testing ensures that all functionalities work as expected and requirements are met.

How do I write Functionality clause?

Writing functionality involves translating user needs and specifications into comprehensive and actionable features within a system or application. Here are typical steps:

  1. Define Requirements: Clearly identify what the system should do and prioritize functionalities based on user needs.
  2. Design: Create a clear design that outlines how functionalities will be implemented, considering both the user interface and backend processes.
  3. Coding/Implementation: Write the code using appropriate programming languages to achieve the desired functionality.
  4. Testing: Rigorously test functionalities to ensure they meet requirements and function correctly.

Example: Defining a functionality for a calculator to perform addition:

  • Requirement: The calculator should add two numbers.
  • Design: A simple user interface with two input fields and an ‘Add’ button.
  • Code: Develop the backend function to perform the addition of two inputs.
  • Test: Validate that entering ‘2’ and ‘3’ returns ‘5’.

Which contracts typically contain Functionality clause?

Functionalities are often documented in various types of contracts and formal documents to ensure clarity and agreement on what a software system or application is expected to deliver:

  • Software Development Agreements: Clearly specify the functionalities that the development team is expected to deliver.
  • Service Level Agreements (SLAs): Define specific functionalities that are expected to be provided as part of a service.
  • Project Specifications and Requirements Documents: Detail all the functionalities that the final product must have to meet user expectations.
  • User Stories and Use Cases: In agile methodologies, these artifacts often describe the functionalities from an end-user perspective, guiding development teams on what needs to be implemented.

Example: A software development agreement for an e-commerce platform may include functionality such as “the ability to process payments securely.”

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