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Service Agreement Template

Free service agreement template for businesses providing ongoing services. Covers service scope, SLAs, payment, liability limitations, and termination provisions.

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Service Agreement


1. Parties and Effective Date

This Service Agreement ("Agreement") is entered into as of [Effective Date] by and between [Service Provider Name/Company], a [type of entity] organized under the laws of [Jurisdiction], with its principal office at [Address] ("Provider"), and [Client Name/Company], a [type of entity] with its principal office at [Address] ("Client").

2. Services

The Provider shall furnish the services described in Schedule A attached hereto ("Services"). The Provider shall perform the Services in a professional and workmanlike manner, consistent with industry standards. The Provider shall assign qualified personnel to perform the Services and shall not subcontract any portion of the Services without the Client's prior written consent.

3. Compensation and Payment

The Client shall compensate the Provider as follows: [Monthly retainer of (Amount) / Hourly rate of (Amount) / Fixed project fee of (Amount)]. The Provider shall submit invoices [monthly/upon milestone completion], and payment is due within [30] days of invoice date. All fees are exclusive of applicable taxes, which shall be the Client's responsibility.

4. Term and Renewal

This Agreement shall commence on [Start Date] and continue for an initial term of [12] months. Thereafter, the Agreement shall automatically renew for successive [12]-month periods unless either party provides written notice of non-renewal at least [60] days prior to the end of the then-current term. Fees for renewal terms may be adjusted with [30] days' written notice.

5. Limitation of Liability

EXCEPT FOR BREACHES OF CONFIDENTIALITY OR INDEMNIFICATION OBLIGATIONS, NEITHER PARTY SHALL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES. The Provider's total aggregate liability under this Agreement shall not exceed the total fees paid by the Client in the [12] months preceding the claim. This limitation applies regardless of the theory of liability.

6. Termination for Cause

Either party may terminate this Agreement immediately upon written notice if the other party: (a) commits a material breach and fails to cure within [30] days of written notice; (b) becomes insolvent or files for bankruptcy; (c) is found to have made a material misrepresentation. Upon termination, the Client shall pay for all Services rendered through the termination date, and the Provider shall deliver all work product and Client materials.

Signature — Party A

Signature — Party B

Tips for Using This Template

  • Attach a detailed Service Schedule or Statement of Work that clearly lists all deliverables and timelines.
  • Include service level commitments (response times, uptime guarantees) if the engagement warrants them.
  • Define what constitutes a material breach to reduce ambiguity in termination disputes.
  • Consider adding a dispute resolution clause (mediation before litigation) to save time and legal costs.

Frequently Asked Questions

What is the difference between a service agreement and an SLA?
A service agreement is the overarching contract governing the relationship, while an SLA (Service Level Agreement) defines specific performance metrics like uptime, response times, and penalties for non-compliance. An SLA is often attached as a schedule to a service agreement.
Should I use a service agreement or a freelance contract?
Use a service agreement for ongoing business-to-business relationships with defined terms and renewals. Use a freelance contract for project-based work with individual contractors that has a clear start and end date.
Can I limit my liability in a service agreement?
Yes, liability limitations are standard in service agreements. However, they must be reasonable and clearly stated. Courts may refuse to enforce limitations that are unconscionable or that attempt to exclude liability for gross negligence or willful misconduct.

Related Templates

Service Level Agreement (SLA)

Free SLA template for defining service quality standards. Covers uptime guarantees, response times, performance metrics, penalties, and escalation procedures.

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Consulting Agreement

Free consulting agreement template for hiring consultants and advisors. Covers engagement terms, deliverables, fees, expenses, confidentiality, and IP ownership.

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Service Agreement for India

Free service agreement template for Indian businesses. Covers GST compliance, TDS provisions, MSME payment terms, IT Act 2000 electronic execution, and Indian arbitration clauses.

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Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction. Consult a qualified legal professional before using this document for any binding agreement. ContractClaw Sign is not a law firm and does not provide legal services.

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