Service agreement, or commonly called consulting services agreement, general service contract, or service level agreement is a written agreement made on matters of service specifically. This is because some of the companies provide services to other companies. The agreement is used if a company provides services for individual or business and if it is contracting by certain business to receive the services. The service provided is in exchange of compensation with service agreement template available in here. It is better than believe on the people and reputation only with some consideration as follows.
Purpose of Service Agreement
For the service provider, the service agreement is useful to protect the interests of the business as well as to obtain compensation in accordance with the agreement of both parties. On the contrary, for customers, they could use the agreement to get services that are specified including assignments, compensation, and others that may be required in the process.
Information and Description of Service
The first thing that must be done in the service agreement template is identify the party who provides the service and the customer who will use the service. In addition to get a complete data, the contact would have to be provided as one of the vital information for both sides. Accurate and clear description of the services to be provided is also an important part exactly. To be included also is in terms of what will be done in agreement.
Schedule and Terms of Confidentiality
Further details about the compensation will also be attached like the regulations, wages, taxes that may be included, the payment schedule, the resources that will be used, and some of the given sanctions or punishment in case of late in making a payment or other matters agreed upon the two parties. Other matters that deal with sensitive information can also be added or not depending on each customer. It is because some customers prefer to add some sections that can protect the confidential information.
Ownership of Materials and Others
During a relationship between the customer and the service provider, the ownership of material is needed to state too in the agreement. The service provider may retain the ownership of the materials because they have the right or it exclusively gives it to the customer. Extra options also can be added depending on the situation or the condition of each party. Another option is for example the return of property, indemnity, liability, and legal expenses.
An accurate description related to the services provided can also be used by the customer to provide new ideas about what they want and expect from the service provider. This could allow the service providers to consider the services more optimally and in accordance with the expectations of the customer. More accurate detail or explanation given is also highly advisable to minimize misunderstandings between the two parties.
Service does look a little more complicated than a product because it is not real whereas the product is real and the customer can judge it directly. So the two sides need their protection through a service agreement template. It is better than just have a full trust in the person or the company’s reputation. It can be achieved by following some considerations.
Example Master Service Agreement