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Service Contract
Define scope, payments, timelines, and responsibilities with this Service Contract Template.
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Service Contract Template
This Service Contract (“Agreement”) is entered into on [Date], by and between:
Client: [Full Legal Name / Company Name], located at [Address], email [Email], phone [Phone].
Service Provider: [Full Legal Name / Company Name], located at [Address], email [Email], phone [Phone].
Together referred to as the “Parties.”
1. Scope of Services
The Service Provider agrees to perform the following services:
[Detailed description of services, deliverables, and milestones].
A detailed scope of work may be attached as Exhibit A.
2. Term
This Agreement shall commence on [Start Date] and continue until [End Date/Completion], unless terminated earlier in accordance with Section 13.
3. Service Levels
The Service Provider shall perform services in accordance with industry standards and agreed service levels, if applicable. Specific performance targets, response times, or KPIs are outlined in Exhibit B – Service Level Standards.
4. Fees and Payment
The Client agrees to pay the Service Provider as follows:
Contract price: $[Amount] or hourly/daily rate: $[Rate].
Payment schedule: [Deposit %, milestone payments, recurring billing terms].
Invoices are payable within [X] days of receipt.
Late payments may accrue interest at [X%] per month or the maximum allowed by law.
5. Expenses
Pre-approved business expenses incurred in connection with services shall be reimbursed by the Client upon submission of receipts.
6. Client Responsibilities
The Client agrees to:
Provide necessary access, data, and resources to enable service delivery.
Review deliverables and provide feedback within [X] business days.
Ensure timely cooperation to prevent project delays.
7. Subcontractors
The Service Provider may engage subcontractors, provided that they comply with the terms of this Agreement. The Service Provider remains responsible for subcontractor performance.
8. Confidentiality
Both Parties agree to maintain the confidentiality of proprietary or sensitive information disclosed during this Agreement.
Confidentiality obligations survive termination.
9. Intellectual Property
Unless otherwise agreed in writing:
The Client owns deliverables produced under this Agreement upon full payment.
The Service Provider retains ownership of pre-existing intellectual property, tools, or methods used.
The Service Provider may reference non-confidential deliverables in portfolios.
10. Data Protection
If services involve handling personal data, both Parties shall comply with applicable data protection laws, including [GDPR/CCPA or local equivalent].
The Service Provider shall implement reasonable security safeguards to protect Client data.
11. Warranties
The Service Provider warrants that services will be performed in a professional and workmanlike manner consistent with industry standards.
No other warranties, express or implied, apply unless expressly stated.
12. Insurance
The Service Provider shall maintain general liability insurance of at least $[Amount] and provide proof upon request.
13. Termination
Either Party may terminate this Agreement with [30] days’ written notice.
Either Party may terminate immediately for material breach if not cured within [10] days.
Upon termination, the Client shall pay for all completed work and reimbursable expenses.
14. Indemnification
Each Party agrees to indemnify, defend, and hold harmless the other Party against claims, damages, or liabilities arising from breach of this Agreement, negligence, or misconduct.
15. Limitation of Liability
Neither Party shall be liable for indirect, incidental, or consequential damages.
The Service Provider’s total liability shall not exceed the total fees paid under this Agreement in the preceding [12 months].
16. Force Majeure
Neither Party shall be liable for delays or failures caused by events beyond their reasonable control, including natural disasters, cyberattacks, labor disputes, or government restrictions.
17. Dispute Resolution
Disputes shall first be resolved through negotiation, then mediation. If unresolved, the Parties agree to binding arbitration or litigation in [Venue].
18. Governing Law
This Agreement shall be governed by the laws of [State/Country].
19. Entire Agreement
This Agreement, including all exhibits, constitutes the full understanding between the Parties and supersedes all prior discussions. Amendments must be in writing and signed by both Parties.
Signatures
Client: ___________________________ Date: ____________
Name & Title: ______________________
Service Provider: __________________ Date: ____________
Name & Title: ______________________
Exhibit A – Scope of Work & Deliverables
Exhibit B – Service Level Standards (if applicable)
Exhibit C – Payment Schedule
Exhibit D – Confidentiality/Non-Compete Clauses
Details
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Service Contract
SERVICE CONTRACT FAQ
What is a Service Contract?
A Service Contract is a formal agreement between a service provider and a client that details the scope of services, payment structure, responsibilities, and conditions under which the services will be provided.
Why is a Service Contract important?
It prevents disputes by clarifying expectations and ensures both parties are legally protected. It also establishes performance standards, payment obligations, and remedies in case of default.
When should you use a Service Contract?
Use it whenever hiring or providing professional services, whether for one-time tasks or ongoing business relationships. Common examples include consulting, maintenance, IT support, or creative services.
What should a Service Contract include?
It should define the scope of services, project timeline, payment terms, confidentiality obligations, warranties, termination rights, and governing law. Optional clauses like dispute resolution or non-compete may also be included.
Does a Service Contract protect both parties?
Yes. It ensures that the client receives services as promised and the provider is paid on time, with legal remedies available to both if obligations are not met.
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