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Basic Service Agreement

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Josephine Seibert June 9, 2019 Service Agreement

Both parties should be able to terminate for a material breach that is not cured within a specified period (usually 30 days). It is also common to allow one party to terminate if the other party becomes bankrupt or insolvent. Termination for convenience is more problematic, and may not always be appropriate. If the customer can terminate for convenience, consider whether there should be a cancellation fee to compensate for the loss of the bargain or to at least cover out-of-pocket expenses, or whether the customer forfeits any pre-paid amounts. Finally, clarify what obligations apply on termination – for example, the customer should immediately pay for services performed up to termination for which the service provider has not been paid.

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Regardless of the contract structure, however, all service agreements should address the ten important issues discussed below. Note that this article is written from the service provider’s point of view – customers reviewing service agreements may be concerned about different issues, and may have different perspectives on the issues.

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Insurance clauses are not necessarily standard, but they are not unusual. Customers may wish to specify what insurance is required, and in what amounts, for comfort that the service provider can meet its indemnity obligations. If the agreement requires insurance, make sure the specified coverage and amounts are reasonable ($1-2 million general liability and errors and omissions should be sufficient in most circumstances). Review the insurance provisions carefully, and seek feedback from the insurer.

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This is important for two reasons. First, those agreements help the service provider in its day-to-day business of providing services and getting paid. Second, agreements that protect the service provider’s business and assets make it a more desirable target for investment or acquisition.

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If the service provider will have access to the principal’s confidential information (e.g. information on its business and customers) then confidentiality and privacy obligations must be included, particularly if confidentiality is an issue for your business, in order to protect the principal. basic service agreement form basic service agreement template free simple service agreement template word simple service agreement format simple service level agreement definition The service agreement should include a statement of work, which identifies the project’s scope and the respective responsibilities of you and your client. Oftentimes, if conflict arises it’s because the scope wasn’t properly defined, which led you and your client to interpret scope differently. Watch out for scope creep! simple service level agreement example Your company’s boilerplate service agreement should reflect the price structure that is most appropriate for your business. It should specifically state whether or not your company is compensated on a per-project (flat fee) basis or an hourly, weekly, or monthly fee basis. If you charge the same rates for all clients, then include these numbers in the contract; otherwise, you should leave blanks that can be filled in depending on your negotiations with each respective client. basic service agreement template ndis basic cleaning service agreement basic services contract template service agreement template ndis service level agreement examples uk basic service agreement contract template simple service agreement template doc simple service level agreement simple service agreement template simple service agreement template uk service agreement contract template pdf service agreement contract template word basic service agreement template simple service level agreement format service agreement template free download service agreement contract template uk basic service agreement basic service level agreement service agreement contract template free simple service agreement contract template basic service agreement definition basic service level agreement template uk simple service agreement form service agreement template free internal service level agreement template uk simple cleaning service agreement simple service level agreement template south africa basic service level agreement template simple service agreement template free

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