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Service Agreement Page of
Page of

GENERAL SERVICE AGREEMENT

THIS GENERAL SERVICE AGREEMENT (the "Agreement") is dated this ________ day of ________________, ________.

Client

____________________________________________________
(the "Client")

Contractor

____________________________________________________
(the "Contractor")
  1. BACKGROUND
  2. The Client is of the opinion that the Contractor has the necessary qualifications, experience and abilities to provide services to the Client.
  3. The Contractor is agreeable to providing such services to the Client on the terms and conditions set out in this Agreement.

IN CONSIDERATION OF the matters described above and of the mutual benefits and obligations set forth in this Agreement, the receipt and sufficiency of which consideration is hereby acknowledged, the Client and the Contractor (individually the "Party" and collectively the "Parties" to this Agreement) agree as follows:

  1. Services Provided
  2. The Client hereby agrees to engage the Contractor to provide the Client with the following services (the "Services"):
    • _______________________________________________________________
      _______________________________________________________________.

  3. The Services will also include any other tasks which the Parties may agree on. The Contractor hereby agrees to provide such Services to the Client.
  4. Term of Agreement
  5. The term of this Agreement (the "Term") will begin on the date of this Agreement and will remain in full force and effect until the completion of the Services, subject to earlier termination as provided in this Agreement. The Term may be extended with the written consent of the Parties.
  6. Performance
  7. The Parties agree to do everything necessary to ensure that the terms of this Agreement take effect.
  8. Currency
  9. Except as otherwise provided in this Agreement, all monetary amounts referred to in this Agreement are in CAD (Canadian Dollars).
  10. Compensation
  11. The Contractor will charge the Client a flat fee of $__________ for the Services (the "Compensation").
  12. The Contractor will invoice the Client when the Services are complete.
  13. Invoices submitted by the Contractor to the Client are due within 30 days of receipt.
  14. Reimbursement of Expenses
  15. The Contractor will be reimbursed from time to time for reasonable and necessary expenses incurred by the Contractor in connection with providing the Services.
  16. All expenses must be pre-approved by the Client.
  17. Confidentiality
  18. Confidential information (the "Confidential Information") refers to any data or information relating to the Client, whether business or personal, which would reasonably be considered to be private or proprietary to the Client and that is not generally known and where the release of that Confidential Information could reasonably be expected to cause harm to the Client.
  19. The Contractor agrees that they will not disclose, divulge, reveal, report or use, for any purpose, any Confidential Information which the Contractor has obtained, except as authorized by the Client or as required by law. The obligations of confidentiality will apply during the Term and will survive indefinitely upon termination of this Agreement.
  20. All written and oral information and material disclosed or provided by the Client to the Contractor under this Agreement is Confidential Information regardless of whether it was provided before or after the date of this Agreement or how it was provided to the Contractor.
  21. Ownership of Intellectual Property
  22. All intellectual property and related material, including any trade secrets, moral rights, goodwill, relevant registrations or applications for registration, and rights in any patent, copyright, trademark, trade dress, industrial design and trade name (the "Intellectual Property") that is developed or produced under this Agreement, will be the sole property of the Client. The use of the Intellectual Property by the Client will not be restricted in any manner.
  23. The Contractor may not use the Intellectual Property for any purpose other than that contracted for in this Agreement except with the written consent of the Client. The Contractor will be responsible for any and all damages resulting from the unauthorized use of the Intellectual Property.
  24. Return of Property
  25. Upon the expiry or termination of this Agreement, the Contractor will return to the Client any property, documentation, records, or Confidential Information which is the property of the Client.
  26. Capacity/Independent Contractor
  27. In providing the Services under this Agreement it is expressly agreed that the Contractor is acting as an independent contractor and not as an employee. The Contractor and the Client acknowledge that this Agreement does not create a partnership or joint venture between them, and is exclusively a contract for service.
  28. Right of Substitution
  29. Except as otherwise provided in this Agreement, the Contractor may, at the Contractor's absolute discretion, engage a third party sub-contractor to perform some or all of the obligations of the Contractor under this Agreement and the Client will not hire or engage any third parties to assist with the provision of the Services.
  30. In the event that the Contractor hires a sub-contractor:
    • the Contractor will pay the sub-contractor for its services and the Compensation will remain payable by the Client to the Contractor.
    • for the purposes of the indemnification clause of this Agreement, the sub-contractor is an agent of the Contractor.
  31. Autonomy
  32. Except as otherwise provided in this Agreement, the Contractor will have full control over working time, methods, and decision making in relation to provision of the Services in accordance with the Agreement. The Contractor will work autonomously and not at the direction of the Client. However, the Contractor will be responsive to the reasonable needs and concerns of the Client.
  33. Equipment
  34. Except as otherwise provided in this Agreement, the Contractor will provide at the Contractor’s own expense, any and all tools, machinery, equipment, raw materials, supplies, workwear and any other items or parts necessary to deliver the Services in accordance with the Agreement.
  35. No Exclusivity
  36. The Parties acknowledge that this Agreement is non-exclusive and that either Party will be free, during and after the Term, to engage or contract with third parties for the provision of services similar to the Services.
  37. Notice
  38. All notices, requests, demands or other communications required or permitted by the terms of this Agreement will be given in writing and delivered to the Parties at the following addresses:
    • ______________________
      ______________________________
    • ______________________
      ______________________________

    or to such other address as either Party may from time to time notify the other.

  39. Indemnification
  40. Except to the extent paid in settlement from any applicable insurance policies, and to the extent permitted by applicable law, each Party agrees to indemnify and hold harmless the other Party, and its respective affiliates, officers, agents, employees, and permitted successors and assigns against any and all claims, losses, damages, liabilities, penalties, punitive damages, expenses, reasonable legal fees and costs of any kind or amount whatsoever, which result from or arise out of any act or omission of the indemnifying party, its respective affiliates, officers, agents, employees, and permitted successors and assigns that occurs in connection with this Agreement. This indemnification will survive the termination of this Agreement.
  41. Modification of Agreement
  42. Any amendment or modification of this Agreement or additional obligation assumed by either Party in connection with this Agreement will only be binding if evidenced in writing signed by each Party or an authorized representative of each Party.
  43. Time of the Essence
  44. Time is of the essence in this Agreement. No extension or variation of this Agreement will operate as a waiver of this provision.
  45. Assignment
  46. The Contractor will not voluntarily, or by operation of law, assign or otherwise transfer its obligations under this Agreement without the prior written consent of the Client.
  47. Entire Agreement
  48. It is agreed that there is no representation, warranty, collateral agreement or condition affecting this Agreement except as expressly provided in this Agreement.
  49. Enurement
  50. This Agreement will enure to the benefit of and be binding on the Parties and their respective heirs, executors, administrators and permitted successors and assigns.
  51. Titles/Headings
  52. Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Agreement.
  53. Gender
  54. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  55. Governing Law
  56. This Agreement will be governed by and construed in accordance with the laws of the Province of Alberta.
  57. Severability
  58. In the event that any of the provisions of this Agreement are held to be invalid or unenforceable in whole or in part, all other provisions will nevertheless continue to be valid and enforceable with the invalid or unenforceable parts severed from the remainder of this Agreement.
  59. Waiver
  60. The waiver by either Party of a breach, default, delay or omission of any of the provisions of this Agreement by the other Party will not be construed as a waiver of any subsequent breach of the same or other provisions.

IN WITNESS WHEREOF the Parties have duly affixed their signatures under hand and seal on this ________ day of ________________, ________.

_______________________________
______________________ (Client)
_______________________________
______________________ (Contractor)
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What is a Service Agreement?

A Service Agreement is a contract that defines the terms of a business relationship between two parties (i.e., a service provider and a client). 

A written agreement is crucial because it clearly sets expectations about the services to be provided. Of course, this is essential when a job’s terms are complex or need a detailed explanation. But it’s equally as important for simple terms of service because it helps the parties enforce the contract and avoid disputes

This Service Agreement template is suitable for general business-to-business relationships as well as for individual clients. We also offer templates for specific services such as:

Looking for a Service Agreement in French?

Use our Contrat de prestation de service.

How to write a Service Agreement

Customize LawDepot’s Service Agreement template to suit your unique situation. Simply fill in the form to generate your contract, then make any final changes with the document editor. Then, download your document as a PDF or print a copy to present to your client.

Our template includes all the main clauses needed for a typical Service Agreement. The information you’ll need to draft your agreement is as follows:

1. General information

First, specify how long services are needed (e.g., for a single job, a fixed term, or indefinitely) and where the work will be done (as this affects the laws that apply to your contract).

2. Party details

Provide the contractor and client’s name and address. You can also specify whether each party is an individual or a corporation (which affects the format of the signatures at the end of the document).

3. Service details

Next, clearly describe the service details (i.e., provide a scope of work).

Remember: it’s crucial to be clear and specific when describing the tasks required. If possible, include important dates, project milestones, and a list of deliverables.

With LawDepot’s Service Agreement, you can add each service detail as a separate paragraph and they all appear as a bullet point list in the document. 

4. Compensation

State whether the contractor bills a flat fee, an hourly rate, or some other method of payment. If needed, you can also specify whether that fee includes sales tax.

Describe when the contractor should be paid (e.g. when services are complete or at certain stages of completion). 

To help guarantee the contractor gets fairly paid, they may require a deposit or charge late payment fees. Typically, a reasonable deposit amount is worth about 10-50% of the total contract amount. Reasonable late fees are often up to 25% per year on unpaid sums.

5. Terms and conditions

Customize these common service contract terms to suit your situation:

  • Ending the contract early
  • Addressing work-related expenses
  • Assigning ownership of intellectual property
  • Requiring a duty of confidentiality

6. Final details 

Does your situation require a clause that we haven’t already addressed in the template? No problem. We give you the option to write your own clause and provide tips on how to phrase it. You can also use the document editor to delete or change items as needed.

Are Service Agreements legally binding?

Yes, in most cases a Service Agreement is a legally binding contract. 

Keep in mind that there are legal elements that all contracts must contain in order to be binding:

  1. Offer and acceptance: The service provider offers to work in exchange for compensation, and the client accepts the price for the service.
  2. Consideration: Each party exchanges something of value. In this case, the service provider gets paid while the client benefits from the services. 
  3. Intention: The parties mutually agree to enter into a binding contract. This element is also known as a “meeting of the minds”.
  4. Legality: All elements of the contract must abide by Canadian Laws. For instance, the client cannot hire the contractor for services that are against the law (e.g., laundering money).
  5. Capacity: Each party must have the legal capacity to enter the contract.

Related Documents:

  • Business Plan: Outline your business goals and your plans for achieving them.
  • Invoice Form: Provide a record of services rendered and the amount due to a client.
  • Demand Letter: Request payment for an outstanding debt or demand another party take action on something.
  • Cease and Desist: Issue a warning to another party to stop an action or face legal consequences.
  • Non-Disclosure Agreement: Help maintain privacy when parties discuss sensitive information (also available in French).

Related Articles:

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