Service Agreement

ˈsɝː.vəs ə.ˈɡriy.mənt / Service Agreement


A service agreement is an agreement between two parties where a service provider must provide the stated service to the other party, either an individual or a company.

In return, the client must compensate the service provider for the performance of the agreed-upon service.

Usually in the form of a document, it binds both parties to their partnership.

It must contain the following details to avoid any confusion or misunderstanding:

  • Definition of both parties
  • The specific description of the services
  • Fees and expenses and their allocation between the two parties
  • Schedule and methods of payments
  • Terms of contract
  • Provisions on termination of the contract
  • Proprietary rights
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