Service agreements are legal documents between a service provider and a client, in which the service provider agrees to perform certain services for a client. These services can range from small, individual services like babysitting or dog walking, to much larger scale, more professional services such as accounting or consulting. Regardless of the scale or difficulty of the service that is to be provided, the service agreement acts as a clear outline for the expectations and agreements between provider and client. They are generally most often used by independent contractors, freelancers, and consultants, and, as previously mentioned, they typically involve one party agreeing to pay the other party a set amount of money for a specific service.
Service Agreements Should Be in Writing
While it can be extremely tempting to simply operate by word of mouth or by the honor system, it’s inadvisable to do so. In fact, it’s always a great idea to establish your understanding with the other party in writing. While this is more formal, it also ensures that both parties are very explicit and clear about what is expected from the other and, most importantly, it establishes a clear paper trail indicating the assent of both party to those established terms. So while the temptation to simply operate on a handshake or verbal agreement can be very great, especially when working with a small business or a family-owned company, it’s always best to take the time to draft up an agreement in writing. This simply solidifies the responsibilities of both sides and ensures that the service will be performed at a fair price.
Important Details which Can Be Included in Service Agreements
Simply having an agreement in writing is meaningless if the agreement does not touch on the most important aspects of the business transaction in question. Therefore, it is crucial to hammer out and clearly state the important details of the service, such as:
- Pricing information
- How the client is expected to pay
- When payment is due
- Dates of service
- Dispute resolution protocol
- Any additional details that may apply, like interest
In general, the more specific and detailed your agreement is, the better for both parties. Specificity brings with it more clarity regarding the transaction and the expectations involved on both sides. Be sure to include details surrounding the hows, whats, and when of the service and payment. Stating all of these details in the agreement is essential in case anything goes wrong as that will give you more leverage and assurance.
You Also Don’t Have to Go Through it Alone
At Kaass Law, we understand the importance of a clear and simple agreement. We work closely with many clients who need service agreements due to the nature of their freelance work. If you are considering drafting a service agreement for your business or to have a service provider be held accountable for their work, we invite you to give us a toll free call at (310) 943-1171 to speak to our experienced contract lawyers today. We always stand by our clients so even in the unlikely event that your service provider or client breaches your agreement, we will work closely with you to explore your legal options. Our goal is to ensure our clients get paid their fair share of compensation for their work and nothing less. Get in touch with us to see what solutions we can provide you.
KAASS LAW, 815 E Colorado St #220, Glendale, CA 91205, (310) 943-1171
KAASS LAW is authorized to practice law in California. The above content is intended for California residents only. This content provides only general information which may or may not reflect current legal developments. KAASS LAW expressly disclaims all liability in respect to actions taken or not taken based on any of the contents of this website. The above content DOES NOT create an attorney-client relationship. KAASS LAW does not represent you unless you have expressly retained KAASS LAW in person at the KAASS LAW office.
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