ContractsCounsel Logo
Home Blog 12 Things to Include in a Service Contract

Jump to Section

ContractsCounsel has assisted 298 clients with service contracts and maintains a network of 185 business lawyers available daily. These lawyers collectively have 41 reviews to help you choose the best lawyer for your needs.

A service contract is an agreement between a business and the clients or customers they serve. It outlines the terms and conditions of the services you will provide, the work done, and the payment associated with the service.

Creating a formal record of what your services include, your terms and conditions, and other legal provisions can help ensure that you avoid legal problems down the road.

Here are 12 things to include in a service contract to protect you and your business.

1. Description of Parties Involved

Like any legal agreement, a service agreement should always start with the names and descriptions of each party involved. This means the service provider and their direct client. This might also include other parties and representatives, but usually only in more complex agreements.

2. Outline of Service and Work

Next, it’s very important to define the scope of work, sometimes called the statement of work, and what is included in the contract. Again, this helps ensure that customers aren’t expecting more than was included in the quote and order.

3. Effective Date of Contract and Timeline of Services

Time frames are another important part of any service agreement. The service provider should include the date when the contract is effective and when they expect to start and finish providing the service.

Often, these service agreements also include information about what will be done in the event of a delay and what penalties, if any, will apply for late delivery or completion.

4. Fees and Payment Terms

The fees and payment terms of the service contract should all be included in the agreement. In addition, if there are any penalties or interest for late payment, these should also be included in the contract.

Many service contracts are paid in stages. For example, commencement is often subject to the provision of a deposit, and there may be several predetermined stages in which payment will be made.

5. Insurance and Compliance Terms

Service providers are often subject to regulations that stipulate what kind of insurance they must have and what kind of legal steps they must take to be legally allowed to provide this service.

Insurance and compliance terms in service agreements outline what those insurances and regulations are and what steps the service provider has taken to comply with them.

Suppose the client is responsible for any kind of regulatory requirements or insurance. In that case, this will also be included in this section.

Meet some lawyers on our platform

Sarah S.

35 projects on CC
CC verified
View Profile

Danny J.

13 projects on CC
CC verified
View Profile

Daehoon P.

203 projects on CC
CC verified
View Profile

Darryl S.

79 projects on CC
CC verified
View Profile

6. Indemnification Terms

While any business does their best to minimize risks to their clients, there’s always a chance that something might go wrong despite their best efforts, and vice versa.

Indemnification terms protect the service provider and their client from legal action related to things outside their control.

7. Warranties

Suppose a service includes warranties from the service provider. In that case, the warranty details will be provided, including when it comes into effect and expires, to whom the warranty applies, and under which circumstances it will not apply.

8. Default Terms

A work agreement or service agreement will usually include terms related to default by either party. These state what will be considered a default and the process for handling defaults by the service provider or customer.

See Service Agreement Pricing by State

9. Dispute Resolution and Remedies

The dispute resolution and remedies section helps those engaging in a service contract avoid lengthy court proceedings. Many companies use mediators or arbitrators before legal action can be taken. There might also be situations where one party is automatically entitled to a particular remedy.

10. Nonsolicitation and Non-Compete Clause

Sometimes, such as in the case of an exclusive service agreement, the customer wishes to ensure that the service provider will not offer the same service to a customer in their area. Or a service provider might want to ensure that the person they provide a service to does not start offering the same service.

In this case, a noncompete agreement may be included in the contract.

11. Confidentiality Clause

Sometimes, a work agreement needs to be kept confidential. Often, this happens when the service provider has access to secret or proprietary information.

A confidentiality agreement or nondisclosure agreement helps to ensure that their information will not be made public and sets out their legal remedies if it is.

Service providers may also require confidentiality when providing detailed pricing information that could damage their business if known publicly. This could also be protected in this section.

12. Signatures of Parties Involved

Like any legal agreement, a service agreement needs to be signed by both parties. In this case, it’s important to ensure that the signatories have the legal right to act on behalf of the company they represent. The document will also have to be dated and sometimes witnessed.

Get Help Drafting a Service Contract

Post a project in ContractsCounsel’s marketplace to receive flat fee bids from lawyers for your project. All lawyers have been vetted by our team and peer-reviewed by our customers for you to explore before hiring.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

Need help with a Service Contract?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,588 reviews

Meet some of our Lawyers

Rhea d. on ContractsCounsel
View Rhea
5.0 (14)
Member Since:
April 12, 2023

Rhea d.

Free Consultation
San Francisco Bay Area, California
27 Yrs Experience
Licensed in CA, DC
University of Utah

Rhea de Aenlle is a business-savvy attorney with extensive experience in Privacy & Data Security (CIPP/US, CIPP/E), GDPR, CCPA, HIPAA, FERPA, Intellectual Property, and Commercial Contracts. She has over 25 years of legal experience as an in-house counsel, AM Law 100 firm associate, and a solo practice attorney. Rhea works with start-up and midsize technology companies.

Zachary J. on ContractsCounsel
View Zachary
5.0 (238)
Member Since:
May 27, 2022

Zachary J.

Free Consultation
Crown Point, IN
5 Yrs Experience
Licensed in IL
The University of Michigan Law School

I am a solo-practitioner with a practice mostly consisting of serving as a fractional general counsel to growth stage companies. With a practical business background, I aim to bring real-world, economically driven solutions to my client's legal problems and pride myself on efficient yet effective work.

Mark P. on ContractsCounsel
View Mark
4.6 (9)
Member Since:
July 21, 2023

Mark P.

Free Consultation
Kansas City, MO
9 Yrs Experience
Licensed in KS, MO, NE, TX
University of Missouri - Kansas City I represent a diverse mix in a vast array of specialties, including litigation, contracts, compliance, business and financial strategies, and emerging industries. Credit for this foundation of strength goes to those who taught me. Skilled professors and professionals fostered my powerful educational and professional background. Prior to law school, I earned dual Bachelor’s degrees in Business Administration & Accounting from Peru State College. I received a Master of Business Administration degree from Chadron State College. My ambitions did not stop there. While working full time as a Senior Accountant for the University of Missouri, Columbia, I achieved the lifelong goal of becoming a licensed Certified Public Accountant (CPA). Mizzo provided excellent opportunities and amazing experiences. Managing over $50M in government and private research funding was a gift. As a high ranking professional in the Department of Research, I was given priceless insight into the greatest scientific, journalistic, medical, and legal minds in the world. My passion for successful growth did not, and has not stopped. I graduated summa cum laude (top 3%) with a Doctorate in Law, emphasizing in urban, land use and environmental/toxic tort law from the University of Missouri, Kansas City. This success lead to invaluable experiences of serving as Hon. Brian C. Wimes' judicial clerk for the U.S. District Court for the W. D. of Missouri, as a staff editor/writer for UMKC Law Review, and as a litigation and transactional attorney with Lathrop GPM (fka Lathrop & Gage). My professional and personal network is expansive, with established relationships throughout the U.S. and overseas. Although I engage in legal practice all over the country, I maintain law licenses in Missouri, Kansas, and Nebraska. Federally, I hold licenses in the W.D. and E.D. of Missouri and the District of Nebraska. To offer extra value, efficiency, and options, I maintain a CPA license and am obtaining a real-estate brokerage license.

Rudy C. on ContractsCounsel
View Rudy
Member Since:
July 19, 2023

Rudy C.

Free Consultation
New York
1 Yr Experience
Licensed in NY
St-John's Law School

As a multilingual attorney, Rudy Cohen-Zardi holds multiple degrees from several institutions worldwide. He has gained experience in leading firms, including Eversheds Sutherland, LLP and Bank of China (NY). He is licensed to practice in New York. His practice focuses on bankruptcy, corporate, and contracts law.

Rhea J. on ContractsCounsel
View Rhea
Member Since:
July 21, 2023

Rhea J.

Attorney at Law
Free Consultation
Evansville, IN
10 Yrs Experience
Licensed in IN
University of Illinois at Urbana-Champaign

I am a graduate from Wittenberg University and University of Illinois at Urbana-Champaign. I have been admitted to the Indiana bar since 2013. I have collaborated on several writing projects for the Indiana State Bar.

Karen H. on ContractsCounsel
View Karen
Member Since:
July 23, 2023

Karen H.

Former Division General Counsel
Free Consultation
43 Yrs Experience
Licensed in IL
Loyola University Chicago School of Law

During my tenure as VP & Division General Counsel of PepsiCo Inc. in Chicago, I built upon my diverse career overseeing legal matters for both the domestic and international businesses of PepsiCo and The Quaker Oats Co. My extensive practice areas included M&A, contracts, competition, NDAs, regulatory compliance, consumer product & protection, environmental, patents, and advertising regulations. Throughout my professional journey, I navigated legal complexities associated with an eclectic range of products, spanning juices, sports drinks, cereals, snacks, needlepoint kits, canned goods, eyeglasses, men's suits, car seats and toys. For further information, see my LinkedIn:

Find the best lawyer for your project

Browse Lawyers Now

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

View Trustpilot Review

Need help with a Service Contract?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,588 reviews
See All Business Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

View Trustpilot Review

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

View Trustpilot Review

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

View Trustpilot Review

Need help with a Service Contract?

Create a free project posting
Clients Rate Lawyers 4.9 Stars
based on 11,588 reviews

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Request a call

Find lawyers and attorneys by city