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What is a business service contract template?

This service contract template provides an easy contract between a customer and a business providing a service.

It is simple to fill out and understand, and it will protect both parties against disagreements regarding the hired services over a certain period of time, for the provision of services. Since it is a general template, this entire agreement can be modified to fit any services or for any further clauses you wish to include.

You can take this service contract template in Word into any PDF editing software to fill in the required information or to change the terms of the agreement. It will make sure that you deliver the agreed-upon services and that the client pays you on time.

Why do I need this simple service contract template?

A written contract ensures that both parties understand what services and to be provided and their terms in a business relationship. It covers the scope of services and makes sure that everything is delivered on agreed-upon terms.

For example, a child caretaker may use it to determine the exact times they will be responsible for a certain child, and what the scope of their responsibilities will be. Since the purchase of services is different than material goods, a service contract template is necessary to prevent misunderstandings.

It also protects both parties in the case of disagreements. One of the protections provided by this service contract template pdf is the agreement of both parties that the provider’s services are of adequate quality and that the payment terms are fulfilled.

This means the customer cannot go back and claim the services weren’t worth the fee. It also stops the service provider from quitting their work early and claiming the service was completed, such as if they were providing marketing services.

Also, it covers unpredictable situations such as natural disasters that could cause someone to miss their regular payments.

Can I operate under an oral agreement instead?

It is highly recommended to avoid any spoken agreements or agreements made over informal means of writing like text messages. Unlike physical goods one might purchase at a store, services are difficult to visualize. They’re subjective. There needs to be a concrete and structured contract involved in any service.

Furthermore, oral agreements are difficult to prove in court. Even informal agreements are not reliable evidence under every circumstance. This service contract template provides the clarity needed in case of legal proceedings.

For example, without a contract for services, the other party can go around the payment schedule, and since there is no written evidence of the payment details, you cannot take them to court.

What is included in this service contract template?

This form is easy to understand and can be filled out in no time. Fields within [brackets] are to be replaced with specific information, such as the customer’s legal name in [Customer Name].

Before Section I, the free service contract template begins by identifying all parties involved in the agreement. It also establishes that the customer agrees to the quality of the services which will be provided. It protects the service provider in subjective industries such as marketing and creative services.

Description of services

Section I begins by outline the scope of the services which are being paid for. It is recommended to attach additional documents to outline the services as clearly as possible. For example, if the service will be child care, additional material can describe the exact responsibilities of the caretaker and the needs of the children.

If necessary, you may also provide information to establish the standards for the services to be seen as adequate quality. One use of this would be if the services involved marketing, and the client wanted the advertising to be viewed by a minimum number of people. This would protect them from the marketer showing the product on numerous platforms but generating few views.

Also, make sure to cover the intellectual property - who owns the completed work and the confidential information inside? This section outlines the mutual promises made by both parties on this topic.

The last part of this section is for services where both parties must agree on who owns the rights to the resulting product and joint venture, such as a service to commission a piece of art. If the first [Customer/Service Provider] field determines that the customer owns the rights to the property, then the Service Provider will be the one to waive all rights in the next field.

This service contract template offers the most simple form of this arrangement and can be modified to suit any rights agreement, for any topic and any time frame. It's a binding relationship and a concise document that protects all parties involved.

Payment schedule and payment terms

The service contract template uses an hourly fee, but this can be changed to a flat payment if desired. The information here establishes the payment due, when this fee must be paid, the payment method (such as if it may only be taken through cash or bank transfer), and the consequences of late payments.

Here, it’s been chosen that not paying on time results in a late fee, but that a Breach of Contract will occur after a specified date. For a continual relationship, a binding document is necessary to cover the direct costs and ensure they are paid on time.

Terms of service provider

For numerous reasons, including taxes, legal classifications, and employee standards, it’s necessary to clarify that the provider is an independent contractor.

If they were an employee, the customer might be obligated to pay a different minimum wage or to provide health insurance, depending on the jurisdiction. This is an important part of the legal contract which varies greatly based on the type of service provided.

Amendments

It’s important for this service contract template to establish the requirements to change the contract. Since it can only be done through a formal written agreement, neither party can claim that it changed based on verbal agreements or other informal means.

If there are any essential details you don't want to miss, put them in the amendment according to your mutual agreement.

Choice of law

This clause is found in many legal documents. If the parties live in different areas of law, or if the services are provided in a different location, this determines which state laws the contract must abide by.

If there are any confidentiality clauses, the chosen state laws will be applied if the clause is broken. In this part of contract management process, it's best to consult a legal professional.

Termination details

The termination conditions here outline that both parties must sign a written agreement to terminate the contract. It also agrees that if someone breaches the contract, legal proceedings are to be performed against them. If necessary, you can add more terms to this, such as the payment due to the service provider if the contract is ended early.

This is one of the essential elements of every contract and it must be included to prevent trouble further down the road. It should also include a notice period for when the service stops.

Signatures

Once both parties have read and agreed to the contract, they must sign their names here. The signatures act as a binding agreement. All contract service agreements have this space and it's a must for service businesses and clients.