Key Takeaways
- A service agreement is a legally binding contract between a service provider and a client that outlines the terms and conditions of the services provided.
- The critical components of every service agreement include the scope of work, duration, payment terms, deliverables, performance metrics, confidentiality clauses, dispute resolution mechanisms, termination conditions, indemnification, and governing law.
- They also differ by type, business model and have a variety of industry-specific considerations.
- PandaDoc provides a variety of service agreement templates that you can adapt to your needs and domain including freelancers, consultants, SaaS providers, marketing, and more.
- Tailoring the agreement template to your unique business needs helps you ensure legal compliance and provides a solid foundation for a successful partnership.
What is a Service Agreement?
A service agreement is a legally binding contract between a business or individual and a service provider. This contract outlines both parties’ responsibilities. This includes the terms and conditions and other aspects related to the quality, availability, and deliverability of the service.
By Type
The range of services covered by a contract can vary greatly. As such, there are various types of service agreements, each tailored to the nature of the service being provided or specific industries. Here are some common types.
General Service Agreement (GSA)
This is a broad agreement that you can use for various services. It typically includes clauses related to payment, confidentiality, termination, and other general terms.
Consulting Agreement
Use this agreement template for consulting services. It outlines the scope of work, the consultant’s responsibilities, compensation, and any confidentiality or non-compete clauses.
Consulting Agreement Template
Used 13,088 times
Reviewed by Cory Smith
Freelancers and outsourcers of all kinds can take advantage of this legal, generic consulting agreement template. Customize this template to suit your industry and to highlight your experience.
Use Consulting Agreement TemplateService Level Agreement (SLA)
SLAs are often a component of larger service agreements. They specify the level of service to be provided, including performance metrics, response times, and other key indicators. SLAs are common in IT and outsourcing services.
Service-Level Agreement Template
Used 6,890 times
Adapt this Service-Level Agreement Template as a way to define a service in an official capacity.
Use Service-Level Agreement TemplateMaintenance Agreement
Use this template to outline the terms for ongoing support and maintenance of a product or system. It includes details such as response times, issue resolution procedures, and fees.
Software Maintenance Agreement Template
Used 6,404 times
This software maintenance agreement template provides everything you need to enter into a legally binding agreement for software maintenance services.
Use Software Maintenance Agreement TemplateMaster Service Agreement (MSA)
An MSA is a comprehensive agreement that sets the overall terms and conditions for a long-term relationship between the parties. It may cover multiple projects or services over an extended period.
Master Service Agreement
Used 5,119 times
Reviewed by Sharita Jennings
Between the service and the client, this Master Service Agreement governs work orders. The Parties concur that Client may order services by signing a Work Order, which will be governed by the conditions of this Agreement.
Use Master Service AgreementBy Industry
Various industries might also have their own specific considerations to keep in mind. As such, having a one-size-fits-all template is nearly impossible. PandaDoc provides some of the following industry-specific service agreement templates which you may use for free.
Events
These specialized contracts usually cover venue rentals and event planning services. Special considerations within this industry could include the rules regarding the use of the venue, setup, and breakdown dates, and penalties for not clearing the event space at the agreed-upon time, to name a few.
Catering
These agreements cover catering services for various events, including private, corporate, or special. Special considerations in this case would relate to food preparation, liability regarding food allergies, and dietary requirements, to name a few.
Child Care
These agreements can cover daycare, after-school care, babysitting, and more. In this case, special considerations would be outlining disciplinary action, medical help in case of an emergency, and liability in case of injury, to mention some.
Marketing
Important considerations can include confidentiality about the use of intellectual property, liability for the spread of misinformation, and damages to public reputation
Marketing Consulting Agreement Template
Used 4,972 times
Ensure a successful marketing partnership with our comprehensive Marketing Consulting Agreement Template.
Use Marketing Consulting Agreement Template
Joint Marketing Agreement Template
Used 5,081 times
Joint marketing is common among brands who share a target audience and offer products that complement each other. This joint marketing agreement template will help establish a formal relationship between two parties who wish to engage in joint marketing efforts.
Use Joint Marketing Agreement TemplateProduction
These agreements are usually used for any media production-related services. This can include art installations, photography shoots, video shooting, and image or video editing. Special considerations within these agreements would be whose property the production is, liability for any damage to property or content, and liability about the use of copyrighted items.
Software as a Service (SaaS)
For companies providing software on a subscription basis, a SaaS agreement outlines the terms of use, service levels, and other relevant details.
Interior Design
Photography
Videography
Makeup Artists
Cleaning
How to Write a Service Contract
Writing a service contract involves clearly outlining the terms and conditions of the services to be provided, as well as the expectations and responsibilities of both parties. As with any legally binding contract, your service agreement must include certain clauses.
- Title and Introduction
Start your contract template by clearly stating that the document is a “Service Contract.” Include the names and addresses of both the service provider and the client. Provide the effective date of the contract.
- Services
Your contract should clearly outline the service offered. This can be as detailed as needed to ensure that both parties know exactly what to expect.
- Compensation
Your contract should also clearly outline all compensation for the services delivered. This can be a once-off fee, a subscription fee, or a long-term contract that sets out deliverables and compensation according to a set period. Another consideration is reimbursement of the provider’s costs.
- Terms
Specify in Term the start and end date of the agreement. This can include days, weeks, months, or even years, depending on the particular service delivered. All the conditions within this contract will be in effect during this period.
- Conditions
Include any relevant legal terms and conditions, such as dispute resolution mechanisms, governing law, and jurisdiction. Specify any conditions that could lead to the termination of the contract.
- Responsibilities of the Parties
Clearly outline the responsibilities of both the service provider and the client. Include any client obligations that are necessary for the successful provision of services.
- Relationship
This section simply highlights that the provider acts as an independent contractor throughout this agreement. This is essential to include as it keeps the entities separate in all things not included in this contract.
- Insurance
List the type of insurance the service provider must have and who’s responsible for maintaining the policy. This can include insurance such as worker’s compensation, general liability, and property insurance, depending on the industry.
- Termination
Outline how the agreement is to be terminated early. Usually, the contract can be terminated by giving the appropriate written notice.
- Signatures
Make sure that all parties involved thoroughly review and understand the terms before signing. Use fields for signatures and dates for both parties.
Attachments and Exhibits
Attach any necessary supporting documents, such as specifications, schedules, or appendices.
Other Optional Clauses
- Assignment. Clarify if the provider can subcontract the project (or parts of it) to another third party.
- Ownership. This clause is important, especially if the service will deliver new products or intellectual property. This section will stipulate who owns the products, intellectual property, or content developed through this agreement.
- Non-Compete Clause. Clarify whether the service provider is allowed to work with a direct competitor during the term of this agreement. This section can vary depending on your industry.
Legal Clauses and Considerations
When drafting your service contract template, it’s crucial to consider various legal aspects to ensure that your agreement is clear, enforceable, and protects the interests of both parties. Here are some key legal considerations for service contracts:
- Clear and Specific Terms:
Clearly define the scope of services to be provided, including specific details about deliverables, timelines, and milestones.
- Payment Terms:
Clearly outline the total cost of services, payment schedule, and any applicable taxes or fees. Specify the method of payment and any late payment penalties.
- Intellectual Property Rights:
Clearly define ownership of intellectual property created during the provision of services. Specify any licenses or rights granted to the client for the use of intellectual property.
- Confidentiality and Non-Disclosure:
Include clauses to protect confidential information exchanged during the provision of services.
- Liability and Insurance:
Define the limits of liability for both the service provider and the client. Specify any insurance requirements, especially if the services involve potential risks.
- Indemnification:
Include indemnification clauses specifying which party is responsible for certain liabilities, damages, or legal claims.
- Service Level Agreements (SLAs):
If applicable, include detailed SLAs that define measurable performance metrics, response times, and other key indicators.
- Dispute Resolution:
Specify the process for resolving disputes, whether through negotiation, mediation, arbitration, or litigation. Include the choice of law and venue provisions to determine the governing law and the location for resolving disputes.
- Compliance with Applicable Laws:
Ensure that the service contract complies with all relevant local, state, and federal laws and regulations.
- Changes and Amendments:
Include provisions for making changes to the contract and outline the process for obtaining mutual agreement on amendments.
- Warranties:
Specify any warranties provided by the service provider and the remedies available to the client in case of breach of warranty.
- Notices:
Include provisions for how and when formal notices will be delivered between the parties.
Relative Documents
The documents that accompany a service agreement can vary based on the specific nature of the services, industry practices, and legal requirements. However, here are some common documents that may be associated with a service agreement:
- Statement of Work (SOW)
- Non-Disclosure Agreement (NDA)
- Bid or Proposal Documents
- Change Order or Amendment
- Insurance Certificates:
- Depending on the nature of the services, the client may request proof of insurance coverage from the service provider to mitigate potential risks.
6. Compliance and Regulatory Documents:
- Depending on the industry, there may be specific compliance or regulatory documents that the service provider needs to provide to demonstrate adherence to legal or industry standards.
FAQ
A service-level agreement (SLA) is a contract that defines the quality of servicing that a purveyor has to provide a client with, using specific metrics by which the assistances are measured. This treaty fixes penalties and legal remedies which should be applied if a provider doesn’t achieve the agreed service levels. The specified agreements are typically between separate companies or organizations and ordinary clients. Less often, different departments of the same enterprise sign such treaties.
The SLA has to contain the following elements: overall objectives and purposes; detailed service description; necessary performance standards (set by clients); description of penalties in case a provider won’t be able to ensure a client with agreed service levels; information about critical failures (conditions under which a client may terminate a contract). The specified treaty can also include additional points like terms of contract management, pricing changes, and so on.