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More Information about Service Agreement Template

What is A Service Agreement

A service agreement is very important for small time business as well as independent individuals trying to make business with another business. This is a legal agreement between two parties, and might be used in situations where services are performed for a certain fee or particular duties are necessary to be done. For an agreement to be valid legally, it must have several key elements. For instance, a service agreement can be for the sale of services at a particular price. The process for making an agreement normally has discussion, negotiation, information exchange, and other important agreements.

Service Agreement Basic Format

An agreement should have these four important elements to be considered as a agreement. If any of them is not included, the agreement wouldn’t be considered to be legal.

Step 1 Offer: There have to be a certain, clearly specified offer to perform a service. It should be clearly stated on the service agreement.

Step 2 Acceptance: The only services that can be accepted are the ones that are offered. It means that the offer have to be accepted exactly as what is stated on the agreement. Both parties sign that they have accepted the services as stated in the agreement. They must have read and understood the terms as stated in the service agreement.

Step 3 Intention of legal consequences: An agreement needs the parties to get into a legal binding agreement. The service agreement template clearly states the legal consequences in case the agreement is not adhered to. This applies to the service provider in case he fails to offer the agreed service as per agreement.

Step 4 Consideration: In order for a service agreement to be binding, it has to be supported by respected consideration. It means that a party promises to do something in response to an assurance from the other party to offer a help agreed on.

How to Create a Service Agreement

Step 1. Write the date on the upper part of agreement in order to create an effective date. The date of commencement and the completion date is also clearly stated in the agreement.

Step 2. List the parties that are involved in the agreement, with a business or individual titles or names. Both parties have to be clearly mentioned in the service agreement template.

Step 3. Clarify the obligations, which include the service you have to do to accomplish the obligations below the agreement and be as thorough as possible.

Step 4. State the other responsibilities of the party comprehensively.

Step 5. Clarify the terms of payment for every transaction that is going to be made which include the total service amount, how much, and when the payment is due and when the payment will be completed.

Step 6. Explain the timeline or milestones. Include particular dates for the submission of parts of the service or the due date for the service to finish.

Step 7. State a termination section that clarifies the steps that the parties require to take so as to let go the agreement.

Step 8. Include a dispute section to create the handling of a disagreement between the both parties.

Step 9. Create ownership rights for the work that has to be done.

Add date and signature lines. Make sure to put a space for every party to write date and sign.

More Tips about Service Agreement

When signing any service agreement, make sure that you read every detail carefully.

1. Highlight all the things that are vague or unclearly worded for more clarification or deletion if needed.

2. If necessary, write more important details that are not included in the agreement.

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