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A service agreement is a formal agreement between a service provider and a client that covers the terms and conditions of a particular service relationship.
A service agreement serves three primary functions:
Service agreements enhance governance, accountability, and service quality by clearly defining roles, responsibilities, processes, and performance expectations. The agreement details what the service provider will do for the client and how that service will be rendered.
A service provider is an independent contractor who operates on their own. They aren't an employee of the client, and they are bound only by the terms of this document. Other contracts that may be useful in service provider situations include a Non-Disclosure Agreement.
How to use this document?
This document may be used by a service provider getting ready to enter into a new relationship with a client, or by a client preparing to hire a new service provider.
The document can cover pertinent identifying details, such as whether the parties are individuals or businesses, and their respective addresses and contact information. The document can also include the most important characteristics of the agreement between the parties, like duration for the work (e.g., continue indefinitely, end at a certain date, etc.), fee information, details on the services being provided, and more.
The document is flexible and contains various input fields and customization fields allowing the parties to tailor the agreement to their specific needs. This Service Agreement will help the parties outline their expectations before the work actually begins.
Once the document is signed, each person must keep a copy for their own records.
In Canada, the majority of laws governing services agreements are derived from the law of contracts and case law rather than statutes. However, if a service is a professional service, such as accounting, engineering, and so forth, there are strict laws and a code of ethics that govern the service provider. Furthermore, if the service is that of construction or building structures on private lots, permits may be needed. Overall, the legal requirements of any service agreement are contextual and depend on the type of service being provided.
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