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What Is a Service Agreement?

A Service Agreement, also called a service contract or consulting services agreement, is:

  • A written agreement between a service provider and a customer,
    or client
  • A description of the duties or services to be completed by the service provider in exchange for payment
  • A document explaining the rights and obligations of both parties, including expense reimbursement, liability insurance, and confidentiality
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What Is a Service Provider?

Service providers, also known as contractors or freelancers, may work as:

  • Web developers or programmers
  • Graphic designers or illustrators
  • Writers, editors, or translators
  • Marketing, branding, or PR consultants
  • Special event support: caterers, servers, or DJs/musicians
  • Hairstylists or makeup artists
  • Caregivers or child care providers

Why Should I Have a Service Agreement?

Create a Service Agreement in order to:

  • Outline the duties and obligations of both the service provider
    and client
  • Formalize the agreement with the signature of both parties
  • Have a written document you can refer to in the future
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What Information Is Needed in a Service Agreement?

Your Service Agreement should contain the following information:

Service details:

  • Customer and service provider information
  • Description of the service being provided to the customer
  • Contract end date: upon completion, on a set date, or indefinite

Payment details:

  • Billing: hourly rate or flat fee
  • Whether the service provider will be reimbursed for expenses

Additional information:

  • Support or resources provided by the customer (e.g. office space, supplies)
  • Who owns the intellectual property created under contract
  • Insurance obligations for the service provider

What Additional Terms Can I Include in a Service Agreement?

You can choose to include the following terms in your contract:

  • Confidentiality clause: prevents the contractor from disclosing any private or proprietary information obtained from the client
  • Non-compete clause: prevents the contractor from using information learned in the course of the working relationship to compete in the client's market
  • Non-solicitation clause: prevents the contractor from soliciting or hiring the client's employees
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Do You Need Another Service Contract?

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