Service Agreement Drafting


What is service agreement?

Service agreement is a contract between the service provider and a client; where service provider agrees to render a service to a client towards a monitory benefit. This Service not only connotes the Repair Service (Mobile phone or vehicle), it has got a wide meaning and it includes all types of services rendered to any business activity.

Why service agreement is important?

The preliminary meeting of the client & service provider to discuss about conditions, negotiations, etc… But after some time, we face a dilemma with service provider or client & problem starts now.

When relationship starts bitter, oral enforcement contract becomes harder. This is why written agreement is always required.

Generally a service is rendered just by a mutual handshake which is nothing but a oral agreement between the service provider and the client.

Key Points in Service agreements:

  • Roles and Responsibility: Both the parties has to clearly disclose and understand the roles and responsibility that they have to carry out. The responsibility of the Service provider and the responsibility of the client to be disclosed without any ambiguity.
  • Consideration: The term consideration means nothing but the payment. It includes the total amount that need to be paid, and if part payment, the time frame for release of payment.
  • Time of delivery: It is recommended to mention the exact Term of Delivery (Deadline) of Project. Further it is suggested to mention the exact date instead of mentioning it ambitious. Eg. instead of mentioning the delivery time as One Month, it is best to mention the date xx.xx.xxxx).
  • Confidentiality: Most of the secret information are shared between the service provider and client while carrying out the assigned work. There are some chances that confidential information like the data, business plan, strategy and these details to be kept confidential. So the provision of confidentiality is very important.
  • IP Rights: The most valuable asset for an organisation is its intellectual property rights. Hence it should be properly mentioned about the ownership of the IP.
  • Termination: On breach of a term of the agreement by eaither party, at the option of the other party, termination of agreement can be utilised and that need to be clearly mentioned in the agreement.

Service agreements useful to the following industries:

Website Designer

Software Developer


Share Brokers

Business/General Consultants


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