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How To Write A Service Agreement

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Kenneth Huizenga June 8, 2019 Service Agreement

Generally, the service provider provides a service or services to the principal for a fee and may also be reimbursed for pre-agreed out of pocket expenses. These amounts, and any limits that may apply, should be clearly specified or otherwise a way of calculating the relevant amounts should be included in the service agreement.

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The agreement should also indicate how often the client is required to make payments, as well as the acceptable methods of payment (for example, bank wire, money order, credit card, or PayPal). Furthermore, your service contract should make it clear how expenses will be allocated between the parties. Usually, the client will expect you to cover all expenses involved in delivering the services (including costs for parts, labor, and so forth); however, depending on the nature of your business, the client might reasonably agree to be responsible for certain expenses. You can negotiate to have the client pay for these expenses either ahead of time or as a reimbursement to the company.

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It’s customary for service agreements to include provisions with respect to the protection of confidential information. This includes the safeguard of your business strategies, client lists, supplier information, trade secrets, and so forth. Note that a client might request that you adjust the confidentiality provisions so that they’re applied mutually, which is usually acceptable so long as all of your employees, contractors, and everyone else involved in your business handle all client information in compliance with the provision.

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Service agreements do not have to be complex documents, but considering the various issues discussed above will help service providers make sure that their service agreements are thorough and provide the necessary protection.

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