Do I need a Service Agreement?

A Service Agreement (which can also be called terms of service, service contract or Ts & Cs) is a set of standard terms and conditions your business can use to provide services to other businesses or consumers. Your customer must agree to these terms and conditions in order to use your services.

This agreement includes terms and conditions aimed at protecting your business from liability, as far as permitted by law, and can be customised for your business. It is not suitable for businesses that sell goods, for which please use our Supply of Goods Agreement. If you are a freelancer or run a consultancy company, see the Consultancy Agreement. If you are selling goods or services at a distance (e.g. through a website or app), see the Website Terms of Sale/Service.

You need a Service Agreement to help your client understand how and when you will provide the services; to protect your business from non-payment or other breaches by your client; to protect your intellectual property from unauthorised use and confidential information, and to run your business efficiently.

By agreeing to a Service Agreement, a customer shows they are made aware of their rights and obligations. This minimises the likelihood of future disputes, which helps to maintain your business reputation and customer relationships.

This Service Agreement contains provisions regarding:

  •  price and payment terms;
  • the requirement for client to provide you with relevant information and resources as necessary;
  • the services the company will provide and the mechanism to price any changes in scope;
  • company’s ability to sub-contract or delegate any of its obligations under this agreement to a third party;
  • terms under which this agreement will terminate, and the tasks the parties must practice on termination;
  • the limitation of your liability as permitted by law;
  • the allocation of responsibility for breaches of the agreement; and
  • the protection of both parties’ intellectual property and confidential information.

Become a Strand Sahara member for just £35 a month to access our Service Agreement and many more agreements and templates for your business. Find out more here: Standard Membership

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