Free Service Agreement

Answer a few simple questions Print and download instantly It takes just 5 minutes

Create Your Free Service Agreement

  1. Answer a few simple questions
  2. Email, download or print instantly
  3. Just takes 5 minutes

Service Agreement


until completion
until specified
ongoing




Your Service Agreement

This document preview is formatted to fit your mobile device. The formatting will change when printed or viewed on a desktop computer.
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 AUD (Australian Dollars).
  10. Payment
  11. The Contractor will charge the Client a flat fee of $__________ for the Services (the "Payment").
  12. The Client will be invoiced when the Services are complete.
  13. Invoices submitted by the Contractor to the Client are due within 30 days of receipt.
  14. In the event that this Agreement is terminated by the Client prior to completion of the Services but where the Services have been partially performed, the Contractor will be entitled to pro rata payment of the Payment to the date of termination provided that there has been no breach of contract on the part of the Contractor.
  15. The Payment as stated in this Agreement does not include sales tax, or other applicable duties as may be required by law. Any sales tax and duties required by law will be charged to the Client in addition to the Payment.
  16. Reimbursement of Expenses
  17. The Contractor will be reimbursed from time to time for reasonable and necessary expenses incurred by the Contractor in connection with providing the Services.
  18. All expenses must be pre-approved by the Client.
  19. Confidentiality
  20. 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.
  21. 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 authorised 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.
  22. 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.
  23. Ownership of Intellectual Property
  24. 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, trade mark, 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.
  25. 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 unauthorised use of the Intellectual Property.
  26. Return of Property
  27. 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.
  28. Capacity/Independent Contractor
  29. 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.
  30. Right of Substitution
  31. 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.
  32. 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.
  33. Autonomy
  34. 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.
  35. Equipment
  36. 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.
  37. No Exclusivity
  38. 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.
  39. Notice
  40. 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:
    1. ______________________
      ______________________________
    2. ______________________
      ______________________________

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

  41. Indemnification
  42. 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.
  43. Modification of Agreement
  44. 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 authorised representative of each Party.
  45. Time of the Essence
  46. Time is of the essence in this Agreement. No extension or variation of this Agreement will operate as a waiver of this provision.
  47. Assignment
  48. 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.
  49. Entire Agreement
  50. It is agreed that there is no representation, warranty, collateral agreement or condition affecting this Agreement except as expressly provided in this Agreement.
  51. Enurement
  52. 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.
  53. Titles/Headings
  54. Headings are inserted for the convenience of the Parties only and are not to be considered when interpreting this Agreement.
  55. Gender
  56. Words in the singular mean and include the plural and vice versa. Words in the masculine mean and include the feminine and vice versa.
  57. Governing Law
  58. This Agreement will be governed by and construed in accordance with the laws of the State of.
  59. Severability
  60. 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.
  61. Waiver
  62. 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)
Service Agreement Page of
©2002-2019 LawDepot.com®

Service Agreement Information

Alternate Names:

A Service Agreement is also known as a:

  • Contractor Agreement
  • Consultant Agreement
  • General Service Agreement
  • Freelance Agreement
  • Professional Service Agreement

What is a Service Agreement?

A Service Agreement is a written or verbal contract between a service provider and a client that outlines the terms of their professional relationship. Generally, the client agrees to pay the service provider for work on a single job or an ongoing project. A Service Agreement specifies the details of the service provided, the parties involved, billing information, and any other necessary terms.

Who are the parties to a Service Agreement?

There are two main parties to a Service Agreement: a contractor and a client.

A contractor is an individual or an organisation that agrees to supply materials or labour in exchange for payment. A client is an individual or organisation that hires and pays for the professional services.

Service agreements are common for contractors working in professional services such as:

  • Vehicle or aircraft maintenance
  • Pest control in residential or commercial buildings
  • Delivery services for furniture, appliances, and more
  • House maintenance, like electrical contractors or handyman services
  • Manufacturing services, like automated assembly or product testing

Why should I use a written Service Agreement?

It's strongly recommended you use a written Service Agreement when establishing a work relationship between a client and a contractor for the following reasons:

  • Expectations of both the client and the contractor are clearly defined
  • If a dispute arises, the parties can refer to the contract to help find a solution
  • It can help differentiate contractors from employees
  • The agreement can be legally enforceable and, compared to a verbal agreement, is easier to prove in court

How do you charge clients for a service?

Generally, contractors will establish billing details like their rate of pay, deposit amount, late fee amount, and superannuation guarantee in their Service Agreement.

Rate of pay

Contractors can charge either a flat fee (a payment made in full at a certain time) or an hourly rate (a payment that is earned as the work is completed and paid periodically). Factors that may affect a contractor's rate of pay include:

  • The length of the project (whether it is a one-off project or ongoing)
  • The skills required for the job (some contractors charge different rates for different skills)
  • The scope of the project (additional projects may be added or removed)

Deposit amount

Contractors can require clients to make a deposit, usually within 10 to 50% of the total contract amount, before they begin any work. Factors that may affect the deposit amount can include:

  • The stability of the client's financial situation
  • The degree of trustworthiness between the client and the contractor
  • The presence of rivals who may try to entice the client away with competitive prices

Late fees

Contractors can set a reasonable time period for a client to pay an invoice (e.g. within 15 to 30 days of receipt). If payments aren't made within this time frame, contractors can charge late fees (typically no more than 10%) on top of the amount owed. Some reasons a contractor may choose to impose late fees can be:

  • To encourage clients to pay on time
  • To maintain a positive cash flow
  • To avoid carrying customers' debt

Superannuation guarantee

Contractors who operate as a partnership or a company are required to pay the superannuation of their employees. However, sole traders are occasionally entitled to superannuation payments from their clients.

For example, if a person works under a contract that is mostly or entirely for their labour then that person is most likely entitled to super contributions. In other words, if a pet sitter is hired to watch a client's dog while they are away on vacation, the sitter is paid entirely for their labour (the time they spent taking care of the animal) and is therefore entitled to superannuation payments.

If you're unsure of the contractor's superannuation status, consult your local taxation office.

What terms are addressed in a Service Agreement?

Generally, a Service Agreement will address terms regarding early termination, reimbursed expenses, intellectual property ownership, and the duty of confidentiality.

Ending the contract early

In LawDepot's Service Agreement, you can choose to allow either party to end the contract early. If you choose to allow early termination, you must specify how many days prior to termination that written notice should be given. For instance, one week's notice is generally accepted for most short-term contracts, but if a contract is on-going, it's recommended that you provide at least 15 to 30 days notice.

In addition, you may want to include a clause that addresses a partial payment in the event of early termination. For example, if an original agreement is to pay a landscaping company when the services are complete, the landscaper may require a portion of the total contract amount be paid if the contract ends early; this is to compensate for the time and resources spent on the project before its completion.

Reimbursed expenses

Contractors may ask the client to reimburse them for reasonable, work-related expenses. It's recommended you establish the terms for reimbursement in your contract to avoid surprising the client with extra costs at the end.

You could include a term in your contract that requires the client to pre-approve expenses that meet specific guidelines. For example, if a client hires a handyman to do home repairs on several rental properties in different locations, they may include a term in the Service Agreement stating travel, accommodation, and food expenses will be reimbursed up to a certain limit.

Intellectual property

Typically, any intellectual property created by an independent contractor is considered to be the contractor's property, unless otherwise specified in the Service Agreement. If the client holds the rights to the intellectual property, the contractor will only be allowed to use it for the purposes described in the contract.

Confidentiality

In LawDepot's Service Agreement, you can choose to impose the duty of confidentiality on a contractor indefinitely, until the end of the agreement, or not at all. The duty of confidentiality requires a contractor to refrain from sharing any confidential information (any data relating to the client that could be considered private or proprietary) for any purpose, unless the contractor is authorised by the client or required by law.

Related Documents:

  • Hold-Harmless Agreement: allows one party to protect another party from liabilities, losses, claims, or damages during the length of a contract
  • Independent Contractor Agreement: outlines the terms of a work relationship between an independent contractor and a client
  • Contract Addendum: alters one or more terms in an existing contract, while the original document remains in effect
Create your free Service Agreement today
Know a contractor or client who could use a free Service Agreement? Pass it along:
X
Thanks for sharing!
Create your own Product Name
This document preview is formatted to fit your mobile device. The formatting will change when printed or viewed on a desktop computer.
Loading ...
Loading ...

Note: Your initial answers are saved automatically when you preview your document.
This screen can be used to save additional copies of your answers.