Last Updated April 9, 2024
What is a Service Agreement?
A Service Agreement, also known as a contract for services, details the terms of a business relationship between a client and a person or company that provides a service. In this contract, both parties agree to the scope of services required, payment terms, processes for dispute resolution, and more.
Both service providers or people preparing to outsource work can customise LawDepot’s Service Agreement template for a wide variety of services. This document establishes a contractor and client relationship for a specific project, fixed term, or indefinitely.
While verbal agreements are common for simple contracts, a written service contract provides more clarity to complex situations. A written contract also offers more protection for the parties involved.
The certainty in the contract helps avoid conflict. If there is a conflict, the parties may refer to the document for dispute resolution. If the dispute goes to court, a physical contract helps prove and enforce agreed-upon terms.
Keep in mind that Irish law treats employees and contractors differently. If the relationship is one of employment, you should use LawDepot’s Employment Contract instead.
This template suits any general service (such as pest control, security, or recruitment). LawDepot also provides contract templates for specific services like catering, building maintenance, computer IT, consulting, and construction.
What does a Service Agreement include?
To complete LawDepot’s Service Agreement template, consider how your relationship will function concerning:
- The services provided
- The length of time the agreement is effective
- Payment details (including reimbursement of work-related expenses)
- Ending the contract early
- The duty of confidentiality
- The ownership of intellectual property
You may need to include a duty of confidentiality if the contractor will encounter sensitive information (such as building access codes or manufacturing processes). This clause helps ensure the contractor does not share the client’s personal or business data without proper authorisation.
When discussing sensitive information, there is often the question of intellectual property ownership. Unless specified otherwise, the rights to any patents, trademarks, copyrights, etc. typically belong to the client.
LawDepot’s Service Agreement template also clarifies an independent contractor’s rights and entitlements. For instance, contractors retain the right to work autonomously (meaning they have full control over their working hours, methods, and decisions related to their services).
How do you add a cancellation policy?
LawDepot’s Service Agreement template helps you prepare for contract cancellations by including optional terms for notice periods and reimbursement.
A notice period is the time frame in which a party can send a cancellation letter and end the contract early. Notice periods typically range between 1 – 4 weeks, depending on the length of the contract. By requiring a notice period, you can ensure you're given enough time to wrap up your work and calculate any final fees.
Contractors may require clients to reimburse their work-related expenses and pay a portion of the total fees. For instance, clients may agree to reimburse expenses such as travel, accommodation, or specific supplies that the contractor bought to complete the contracted work.
You can also address a cancellation fee in the “Additional Clauses” section of the questionnaire. However, keep in mind that courts are unlikely to enforce an overly large fee (cancellation charge). You can research formulas for a cancellation fee based on your industry, the amount of notice provided, and lost profits.
Can you amend a Service Agreement?
Yes. If both parties agree to change, add, or delete a term in their contract after they have both signed it, they can do so with an Amending Agreement. This document, also known as a contract addendum, makes changes to a contract while maintaining the integrity of the original agreement.
In some cases, a contract addendum may be an option to resolve a dispute. For example, you can use an amendment to extend the end date of a project, add another service detail, or remove a confidentiality clause.