Service Agreement Information
A Service Agreement is also known as a:
- General Service Contract
- Service Level Agreement
- Consulting Services Agreement
What is a Service Agreement?
A Service Agreement is a written document that describes the terms of a service provided by a one party to another in exchange for compensation.
When should I use a Service Agreement?
For service providers: Any time you plan to perform a service for a client and wish to protect your interests and ensure you are compensated accordingly.
For customers: Use a Service Agreement whenever you hire a service provider to perform a paid task in order to establish the exact details of the arrangement, including compensation, duties, and confidentiality, if required.
How to create a Service Agreement
Identify the customer and service provider
Include contact information for both parties.
Describe the services being provided
Include an accurate and clear description of exactly what the service provider is going to do for the duration of the agreement. The more detailed your description is, the less chance there will be misunderstandings later. Also, an accurate description of services gives the customer a clear idea of what to expect and lets the service provider know what is expected of them.
Outline a payment schedule
Determine the compensation details for your arrangement, including pay rate, whether tax is included, payment schedule, who will provide the resources and whether there are penalties for late payments or non-performance.
Establish terms about confidentiality, non-solicitation, and non-competition
You may or may not choose to include terms addressing confidentiality. This will depend on whether the customer prefers to add these clauses to protect sensitive information about themselves or their business.
Non-solicitation and non-competition clauses are also up to the customer and whether he or she wants to prevent the service provider from unfairly competing or soliciting business for a specified period of time.
Address ownership of materials
It is best practice to specify which party will retain ownership rights of the materials produced during the relationship. Rights may be retained by the service provider or be exclusively granted to the customer.
Personalize your Service Agreement
The LawDepot service contract has the option to include additional clauses regarding indemnity, return of property, liability, as well as legal expenses. Adding these terms is optional and depends on your personal situation.