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Service
Contract

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Prepared for:
[Contractor Name]

Prepared by:
[Client Name]

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Service Contract

This Service Contract (herein referred to as "Contract") is made and entered on [Date]

By and Between,

[Service Provider Name] (hereinafter referred to as the “Contractor”), residing at [Service Provider's Address] and 

[Client's Name] (hereinafter referred to as the “Client”), residing at [Client's Address].

The Contractor and the Client are collectively referred to as “Parties” and individually as "Party." 

WHEREAS the Contractor has the necessary qualification and experience to provide the service.

WHEREAS the Client desires to hire Contractor under the terms and conditions outlined in the Contract.

NOW, THEREFORE, IN CONSIDERATION of the matters and covenants expressed herein contained, the parties agree with the below terms and conditions.

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Terms and Conditions

1. Services 

The Contractor agrees to provide the client with the following services:

[Add Services]

While providing the services, the Contractor shall comply with the Client's policies, standards, and regulations. 

2. Deliverables

The contractor agrees to produce the deliverables to the client by [Date], and shall provide the following deliverables:

[Description of deliverables to be produced]

3. Term of Contract

The Term of this contract shall begin from [Date] and will remain effective until the completion of the services, subject to the termination notice provided in the agreement. The term shall extend with the written consent of both the parties.

4. Payment

For the satisfactory performance of the services hereunder, the Client agrees to pay the Contractor an amount of $[0.00]. All the payments made under this contract shall be to the Business name of the Contractor, no payments are to be personally made to an individual under the contract. The payment shall be made through [Payment Mode] under this contract.

5. Return of Property

Upon the termination or expiration of the contract, all the property, documentation, records, and confidential information provided by the Client must be returned by the Contractor. If the contractor fails to do so, it may result in delayed final payment by the Client.

6. Taxes

The Contractor shall pay and will be solely responsible for all withholdings, included, but not limited to, Social Security, Unemployment, State, and Federal income taxes. Additionally, the Contractors shall pay all the sales or use taxes on the provided labor and furnished materials or will otherwise be required by the law in connection with the service provided. 

7. Insurance

The Contractor agrees to maintain and secure, at the Contractor's sole cost and expense, the Worker's Compensation Coverage as required by the law and General Liability Insurance as required by the company. 

8. Relationship

Both the parties understand and agree that the Contractor is an independent service provider and is not an employee, agent, or servant of the Client. The Contractor agrees and understands that they are not entitled to any workers’ compensation benefits from the client and the Contractor is obligated to pay federal and state income taxes on any money earned from this contract.

9. Termination 

The Contactor can terminate the Contract at any time by giving written notice to the Client, of not less than [Number of days] days. 
The Client can terminate the Contract at any time if the contractor violates the terms and conditions of the contract or fails to produce the desired result, as mentioned in the Contract. In the event of termination, the client shall make all the payments for the performed work up to the date of termination.

10. Confidentiality

The Contractor agrees that they will not disclose, reveal, report, or use for all and any purpose any confidential information that the Contractor has obtained, except for those that are authorized by the Client or Judiciary. The Confidentiality obligation will remain effective during the term and will survive indefinitely after the termination of the Contract.

11. Idemnification

Each party indemnifies and holds harmless the other party, and their respective affiliates, employees, agents, officers, and successors from and against all and any claims, damages, losses, and injuries resulting from the acts or omissions of any indemnifying party under this contract.

12. Arbitration

In the event of any dispute arising in and out of this contract between the Parties, it shall be resolved by Arbitration. There shall be [Number of Arbitrators] Arbitrators which shall be appointed by [Party Name]. The venue of Arbitration shall be [Venue/Location of Arbitration] and seat shall be [State of Seat]. The Arbitrators' decision shall be final and will be binding on both the Parties.

13. Miscellaneous

Governing Law: The contract shall be governed by and construed in accordance with the laws of the State of [State].
Severability: If any provision of the contract is held unenforceable, then the remaining provision will continue to be valid and enforceable.
Assignment: This contractor shall not voluntarily assign or transfer its obligation to a third party without the prior written consent of the Client.
Notice: Any notice permitted under this contract shall be given sufficiently if delivered in person or certified through email. A return receipt is requested to the address outlined in the opening paragraph of the contract.
Entire Agreement: Both the parties agree that there is no representation, warranty, or collaterals affecting this Contract, except for those that are mentioned in this Contract.
Waiver: The waiver by either party of the breach, default, delay, or omission of any provision in this Contract by the other party will not be construed as a waiver of any subsequent breach of the same or other provisions.
Force Majeure: Neither party shall be liable for any delay or failure in performing their obligations under this contract that is due to any of the following causes that are beyond its control: acts of God, accidents, riots, war, terrorist attack, pandemic, epidemic, communication facility breakdown, breakdown of internet service provider, natural catastrophes, changes in the law, fire, or explosion.

Acceptance and Signature

IN WITNESS WHEREOF, the parties hereto agree to the terms and conditions of the Service Contract, and provide their acceptance by signing below:

[Contractor's Name]

[Client's Name]

Signature

Assign signer 1

Name

Assign signer 1

Date

Assign signer 1

Signature

Assign signer 2

Name

Assign signer 2

Date

Assign signer 2

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What are the Important Aspects of a Service Contract?

People sign contracts almost every day, whether signing unknowingly for a social media application or knowingly while buying a new car (like a vehicle service contract) from a dealership. Contracts have become a part of day-to-day life.

Having said that, most of the contracts that people sign are service contracts. A service contract is predominantly signed between a service providing company (such as a cleaning service) and a customer. This contract protects both parties when in need and ensures a healthy business relationship.

What is a service agreement contract?

A service contract (also called extended warranty) is a legally binding document signed between a service provider and a customer (or client). It is an exchange of service for compensation.

Such a contract describes the terms and conditions of the service, such as the description of work, payment terms, rights and obligations of both parties, and more. This contract can be in a verbal format (like a customer visiting a salon for a haircut) or in written format (like a web designer might have with the website owner).

A written contract becomes necessary when the terms of a deal are tricky or need to be explained in detail.

Types of service contracts

There are different types of service contracts with various services and payment structures. Below is a list of the types of professional service contracts that are primarily used:

Independent contractor agreements/ contracts
Consulting contracts
Employment contracts
Time and materials contracts
Fixed-price contracts
Not To Exceed (NTE) contract
Retainer based contracts
Managed service contracts

What are the benefits of having a service contract?

Signing a service contract minimizes the disagreements and maximizes productivity. Apart from this, there are several other advantages of a service contract, and that is:

Cost benefits: A service contract can save a lot of money in routine maintenance and unexpected repair.
Product quality: Under the contract, the service providing company/ contractor will be less likely to install or construct a faulty or poor quality product.
Resolve disputes: It also outlines the clauses that will help resolve conflicts and disruptions between both parties.
Provide assurance: A customer can be stress-free when something goes wrong with the service or product. With a contract in hand, the issue will be resolved by the service provider in a timely manner.

How do you write a service contract?

A contract outlines the duties and level of protection that both parties need. For proper legal protection, it is essential to have a well-vetted service contract that includes terms and conditions as mentioned below:

Parties to the contract: A contract starts with this section. It identifies the parties in the contract, i.e., the customer and service provider.
Recitals: This section describes the willingness of both parties to enter into the contract.
Terms and conditions: This is an important section of any contract. It outlines all the required terms and conditions to be followed by both parties. Below are a few major terms of the contract:
- Services: It outlines the description of services. It includes accurate and clear details of exactly what a service provider will do under the contract.
- Deliverables: This section outlines the deliverables and warranties a service provider will provide under the promised amount of time.
- Term of contract: It outlines the duration of the contract and the effective date of the contract.
- Payment: In this section, all the payment terms are mentioned, such as the agreed amount and payment mode.
- Return of property: It talks about the customer’s rights upon completing the service or by the end of the contract.
- Taxes: This section outlines all the taxes that a service provider should take care of.
- Insurance: This section provides information about the insurance policy that a service provider should have in place for the employees.
- Relationship: This gives a brief description of the relationship the customer and the service provider will have under the contract.
- Termination: It speaks, how the contract can be terminated and under what conditions.
- Confidentiality: This clause helps both parties to maintain the confidentiality of sensitive information.
- Indemnification: Under this clause, each party holds the other party harmless from any claims, damages, and injuries.
- Arbitration: This clause helps both parties to resolve disputes or disagreements under the contract.
- Miscellaneous: In this section, all other important terms and conditions are mentioned, such as governing law, severability, notice, waiver, and force majeure.
Acceptance and signature: Once both parties agree to all terms and conditions, they can sign the contract and seal the deal under this section.

Why choose Revv for service contracts?

Here are a few benefits of using Revv for contract management:

A wide range of customizable, pre-drafted, legally-vetted, and ready-to-go contract templates
All the contract templates are available with e-signature, enabling faster deal closures
All contracts are easily accessible across devices and platforms
Seamlessly payment methods directly in the contract with Stripe integration

Revv helps to scale up your business process and save your time. The advanced features help safeguard your dealings and draft contracts in minutes.

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