What is a Service Agreement and Does Your Business Need One?
A service agreement is a written contract between a service provider and its client(s). In many instances it is also known as a service contract or general services agreement, legally binding the two parties to an exchange of services or services provided, adding some level of protection for both the provider and the client. The nuts and bolts of the services contract list what type of services the provider will perform and detail the time frame and compensation for that specific project. The protection side of the agreement will entail the rights and requirements of both parties, including liabilities and confidentiality guidelines, another added level of protection is including a dispute resolution clause in case either party breaches the contract.
You may prepare a service agreement any time you or your business provides a service to another party or when you contract another business or person to provide services for your business. Service contracts have a free range of how long they can be provided for, you can either do one-time deliverables during a limited time frame or continuous partnership over a longer period of time the option is open. Click here to check out a recognized service agreement.
Areas of Service Agreements
A few information points that you will see in every service agreement:
- Services: Explains the scope of the work and the deliverables involved.
- Compensation: States the overall amount (periodically) that the client agrees to pay
- Term: The start & end date of the signed agreement
- Ownership: Provides the clarification if the client has or service provider can claim ownership of any intellectual property or actual products during the duration of the service agreement.
- Relationship: Gives the ability to the service provider to operate as an independent contractor
- Liability: Confirms any insurance or limited liability pertaining to the agreement.
- Work change: States if a work change is permissible or not.
- Confidentiality clause: States the level of confidential status that is to uphold during the term of the service agreement.
- Non-Compete Clause: States the level of work to be provided with the client’s competitors that both parties are to uphold during the term of the service agreement.
- Non-Solicitation Clause: States the specific terms that are prohibited from soliciting the client’s customers and peers.
- Assignment: States and clarifies if the service project may be subcontracted.
- Termination: States the number of days that need to be given before ending the agreement.
Whether you’re a service provider or you need to contract a freelancer, the contract attorneys at Enara Law PLLC can help you protect your business with a legally binding agreement. Receive a services agreement that meets your organization’s unique needs. Give us a call today at 602-687-2010 or email us at [email protected].