Service contract also points to Service agreement or contract for service. It is a written agreement that is created by provider of a service and the customer who uses the service. The contract outlines some terms of specific services that employs and expected by two parties. More details about two parties in this contract are, firstly is the customer as the side who hires or uses another service or business to complete a job in exchange for price or pay. Provider is the side who is being hired to perform and employ the job or projects as agreed to complete for getting paid.
The Condition to Use Service Contract
The service contract must be provided by the service provider whenever hired. Nonetheless, the customer can also provide this document if the provider of the service does not supply. Both of them can take benefit by having service contract since it makes everything clear and minimize the possibility of misunderstanding. Retain copy of contract for both sides will help managing everything in bright spot. The service that must be performed will be suitable to what is expected by the clients and service provider will be possible to add cost when there is additional service that must be employed as asked by the customer or if necessary.
Points in Service Contract Clauses
- Details of service that explain the description of service you offer and contract or job duration
- Details of compensation and payment must be included since it is the right for service provider after performing or completing the job.
- Compensation will be about reimbursement or providing resources as needed by the service provider.
- Penalties must also be included to avoid loss because of some condition such as late payment, prevails for the customer or the service surpass the deadline time, prevails for the service provider.
- Confidentiality is very important and it will keep business between both sides.
- Non personal employed that specify that employee from the provider cannot be recruited or hired in personal necessity.
- Other clauses can be added depend on the condition, situation and necessity. Service will have different matters to handle and it can make the points in agreement is possibly developed.
All points must be written clearly in details and both sides sign and retain the copy of agreement. If the contract is broken, the customer, as agreed and officially proved by the agreement can amend or end the contract. Sign is important to make it official and when one party is break the responsibility, the lawsuit or claims can be done.
If you are looking for a sample for your reference, you can download and read this free service contract agreement for Microsoft Word below. It is a general sample. You need to write your own that can cover all of your business interests.
Services Agreement Template (41.5 KiB, 445 hits)