It is important to remember that a Service Agreement outlines the formal, documented terms of a deal. Therefore it must be written carefully to make sure it can be fully enforceable and impossible to misinterpret.
Firstly, a Service Agreement must be written in plain language and with enough information to ensure that both parties’ objectives are properly understood.
To properly create a Service Contract must also ensure that the necessary details are included.
Follow the steps below to ensure your document states all the necessary details in a clear manner.
Define Each Party and Service
Both parties must be clearly defined to prevent any ambiguity over who is responsible for what.
The assistance that is being provided must also be explained in enough depth to help anyone read or interpret the contract.
It should properly detail the precise actions that the provider is to be paid for and the goals they must meet.
It is very important not to define a service too broadly. Failure to properly explain the role of the contractor or define the work too broadly can make the client liable to provide more compensation than they may originally think at first.
State the Clauses
Additionally, any clauses in the Service Agreement must be properly included and explained. The clauses that you use will ultimately depend on the service being hired, yet, they should be carefully tailored to fit the needs and interests of both parties.
For example, this may include a security provision in case confidential information is being shared to carry out the service. This can exist as its own clause or can be combined with a full Non-Disclosure Agreement (NDA).
Include Consequences for Breach of Contract
Last but not least, the contract should explain what happens if there is a breach on either side. This will help to plan ahead by providing termination conditions and dispute resolution (i.e. Arbitration).
What to Include in a Service Contract
To properly explain the nature of the agreement between the client and the service provider, a Service Agreement must cover a number of essential details. These include the following considerations:
The contractor and client’s information.
An outline of the services being provided.
The amount of money that is to be paid for these services (including the definition of reasonable expenses).
The payment schedule of the transaction amount.
Any confidentiality agreements, indemnities, or warranties (optional).
The dates that the agreement will operate between.
The signatures of both parties.