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service agreement

Service Agreement

Service Agreements Drafted or reviewed by our specialist lawyers

Service Agreements capture in writing agreements between a business and a service provider. A Service Agreement defines the services being provided, the terms of payment, timings, what occurs if a dispute arises, and how the agreement can be terminated.

Service Agreements will differ widely by industry, and the nature of the commercial relationship.

But they will all typically cover the following areas:

  • Description of services
    Exactly what will be provided, how, when, with what materials etc.
  • Timing
    Will the services be provided according to a timeline, on a schedule, as needed, or ad hoc etc.
  • Payment Terms
    How and when payment will be made.
  • Exclusion
    Whether anything should specifically not be included as being covered by the agreement.
  • Insurance
    Who will be responsible for insurance. Liability should be explicitly limited in this section, for actions not covered by insurance.
  • Copyright, Confidentiality and intellectual property
    Any information shared with the service provider should be protected under a clause addressing intellectual property. Patents, sensitive information, client lists etc. can all be explicit referenced if relevant.
  • Termination for provider and recipient
    These clauses should define what action would be ground for termination, and the notice periods required for either party to end the agreement.

Whether the services are being provided on an ongoing basis, or a one-off, it is important to have everything that has been agreed on in writing, and signed by both parties before any work commences. Service Agreements will add certainty to business deals and minimise risk for all parties.

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