Austin TX Business Law Blog

Tuesday, October 25, 2022

What to Include in a Service Contract

Over the course of running a business, it is likely that you will need or encounter a service contract at one point or another. If you provide a service to your clients or customers, your service contract will detail the terms and conditions of those services you are to provide them with. You may also need a service contract in place if your business needs to retain someone like a freelancer or temporary worker. Companies often use freelance workers for services ranging from things like website design, to marketing and more. Here, we will go over what you should be sure to include in these kinds of service contracts to help ensure that expectations on both sides are firmly established, everyone is aware of their rights and responsibilities pursuant to the contract, and your best interests are protected no matter how things go.

What to Include in a Service Contract

When you are looking to retain a temporary worker to accomplish a specific task for your business, a strong written service contract can be essential. You may be tempted to simply make it an oral, handshake agreement, but doing so often ends up complicating things as opposed to simplifying them. You see, with a written service contract, you can detail the scope of the work to be completed. You can set down a specific timeline for when the work needs to be completed by and you can iron out any payment details. These are things that set clear expectations for both you and the temporary worker to help ensure everyone understands their rights and responsibilities pursuant to the service contract.

There are, of course, a few basic things that a service contract should include, starting with the names and contact information of the parties to the contract. There should also be a detailed description of the services and work to be performed. The more specific this section is, the better. You should include a timeline for this work to be completed and the effective date of the contract. State when the work will begin. If the work is to be completed in phases, then detail what work should be completed and by what date.

The details regarding compensation should also be described in the service contract. State what you will be paying the worker, when, and under what circumstances. Outline the payment schedules and provide a description of the fees. Other terms you should consider including in a service contract include:

  • Indemnification terms
  • Warranties
  • Dispute resolution
  • Remedies
  • Confidentiality

This means the contract should set forth how the temporary working relationship should go. It also means that the contract should set forth what will happen in the event that something goes wrong and someone breaches the contract. Setting forth all of this up front can help things run smoothly, even if there are some bumps in the road along the way.

Business Law Attorney

Need a service contract for your business? You can count on The Kumar Law Firm to develop a service contract that protects your business as well as helping to encourage a positive working relationship with your service provider. Contact us today.

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