What is a Service Agreement?
A Service Agreement, also known as a Service Contract or Contract for Services, is a written agreement between a service provider and customer that outlines the terms of a particular service between the two parties.
You can use this Service Agreement in England, Wales, Northern Ireland, or Scotland.
Parties in a Service Agreement:
Customer: The customer is the individual or corporation who hires another individual or corporation to complete a job or service for them in exchange for pay.
Service Provider: A service provider is the business or individual being hired to follow through on the job, project, or commitment that they agreed to complete for pay.
When can I use a Service Agreement?
If you are the service provider, you should use a service contract whenever you are hired by a customer to complete a service.
As the customer, if the service provider does not supply the contract, you can use a Service Agreement to ensure that the terms of the service relationship are clear.
For example, if a business wanted to hire security guards to patrol the entrances at a private event, the security guards (service provider) or you (the business) may supply a service contract detailing the services required/offered by the guards (e.g. preventing people from entering without permission, keeping patrons safe, monitoring the event etc.), as well as payment terms, event details etc.
What type of clauses are included in a Service Agreement?
In the service contract, you can include a description of services and duration of the contract/job.
Payment and Compensation Details
Compensation and pay rate should be included in the contract, as well as a payment plan for when the provider will be paid. You may also include whether any resources will be reimbursed to the provider, such as gas or travel expenses, or if the consultant will provide the resources as part of the agreement.
Penalty clauses may be specified in your Service Agreement, including if there is a fee for late payments or if the service provider does not come through on the service during the agreed upon time.
If the service provider will be in contact with a business or individual's private information, you may specify a time period in which they cannot divulge this information to an outside source or competitor.
An employer or customer may specify that the service provider cannot try to recruit their employees away from the customer/business.
Non-compete clauses mean that the service provider is prohibited from directly competing against the customer, or working with a competitor for a certain time period.
Ownership of Materials
If the service provider is creating materials (e.g. a web designer who has developed a home page design for a business), you may establish whether these materials are property of the customer or if the ownership rights remain with the service provider.
Other clauses you may address in your service contract include dispute resolution, limits on liability, indemnification, insurance, legal fees, or enurement.
Other Forms You May Need: