A service agreement is an agreement between a company (usually referred to as the “principal”) and a service entity (usually referred to as the “service provider”). The service provider agrees to provide a service to the principal for a fee. The service provider may agree to provide a one-off service for a set fee or continuing services to the principal for a pre-determined length of time for a fee.
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LegalVision’s LVDox™ Service Agreement template sets out:
- the terms of the relationship;
- the rights, responsibilities and obligations of the service provider and principal; and
- business processes such as payment, fees and invoicing.
The document is 7 pages long and contains 12 clauses and 1 schedule.
The LVDox™ Service Agreement is a basic consultancy agreement. This Service Agreement template is drafted to protect the interests of the service provider and is intended to set out a description of the services and the commercial terms (e.g. price and payment method) at which they will be provided. It is recommended that the services agreement is entered prior to the service provider providing the services. This Services Agreement template also includes the provision of goods that may be ancillary to the provision of the services.
If your service agreement relationship is more complex, then it’s important that you have a lawyer assist you draft the following clauses:
- an unpaid invoices collection clause;
- a confidentiality clause;
- the ability for the service provider to be paid on commission;
- a subcontracting clause allowing the principal to restrict the ability of the service provider to subcontract the services;
- a sophisticated dispute resolution clause;
- a sophisticated workplace health and safety clause;
- a non-compete clause;
- a provision to protect your intellectual property and to allow the service provider to use it, if required; and
- additional provisions in related to the rights, responsibilities and obligations of the service provider and principal, particularly if agreement has been reached on particular issues.
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