WHAT IS A SERVICE AGREEMENT?

A service agreement is a legal document that outlines the relationship between a client and a service provider and sets out the terms and conditions of the services to be provided to the client. For example, a snow removal company may wish to enter into a service agreement with its client for the removal of snow throughout the winter. The agreement will act as an assurance that the service provider will carry out the services promised in accordance with the agreed-upon terms. If the service provider fails to perform their services to the standard outlined in the service agreement the client may be able to pursue legal remedies in the event of a breach of the service agreement. The service agreement will generally identify the parties involved, the scope of the services to be provided, the price for the service, payment terms including interest on outstanding payments, term length of the agreement, renewal options if any, and limits on the service provider’s liability. In our experience, a service agreement may be short and simple or lengthy and complex depending on the type of services being provided. If you are an individual or entity planning to carry out services for a client, we recommend consulting an experienced business lawyer to draft the service agreement for you to protect your interests and mitigate risk.

If you are looking to enter into a service agreement, contact us today and set up a consultation with a business lawyer who can answer any questions you may have about entering into the service agreement.

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Disclaimer: The information contained in this article is not to be construed as legal advice. The content is drafted and published only for the purpose of providing the public with general information regarding various real estate and business law topics. For legal advice, please contact us.

About the Author:

Shahriar Jahanshahi is the founder and principal lawyer at Jahanshahi Law Firm with a practice focus on representing business star-ups and investors in the province of Ontario. For further information about Shahriar Jahanshahi, click here.