                                 CODE OF VIRGINIA

CONTRACTING REQUIREMENTS (§ 59.1-209)

A. Every contract for invention development services shall be in writing and
shall be subject to the provisions of this chapter. A copy of the written
contract shall be given to the customer at the time he signs the contract.

B. If it is the invention developer&#8217;s normal practice to seek more than
one contract in connection with an invention, or if the invention developer
normally seeks to perform services in connection with an invention in more than
one phase with the performance of each phase covered in one or more subsequent
contracts, at the time the customer signs the first contract, the invention
developer shall so state in writing and shall supply to the customer such
writing together with a written summary of the developer&#8217;s normal terms,
if any, of such subsequent contracts, including the amount of the
developer&#8217;s normal fees or other consideration, if any, that may be
required from the customer.

C. Notwithstanding any contractual provision to the contrary, no payment for
invention development services shall be required, made or received until the
expiration of a four-working-day period commencing on the date on which the
customer receives a copy of the contract for invention development services
signed by the invention developer. Delivery of a promissory note, check, bill of
exchange or negotiable instrument of any kind to the invention developer or to a
third party, irrespective of the date or dates appearing on such instrument,
shall be deemed payment for the purpose of this section.

D. Until the payment specified in this section is made, the parties shall have
the option to terminate the contract, which option may be exercised as follows:
(i) the customer may exercise the option by refraining from making payment to
the invention developer, (ii) the invention developer may exercise the option to
terminate by giving to the customer a written notice of its exercise of the
option, which written notice shall become effective upon receipt thereof by the
customer.

HISTORY: 1977, c. 649.