Many clients use the ContractsCounsel platform to find a lawyer to draft a service agreement for their business. During the traditional drafting process, lawyers will ask clients what terms they want included in their agreement with customers.
At ContractsCounsel, we ask this question when a client is posting a project to receive proposals. We have analyzed thousands of postings to see the most common terms clients request to include in their agreements to help you plan and think through what you may want included in your service agreement.
Based on real data from the ContractsCounsel platform, these are the most requested terms clients ask lawyers to include:
1. Payment and Refund Terms
The most common client requests are related to detailed payment structures, invoicing cycles, deposit requirements, and refund policies. Clients want clear payment terms and specific rules around refunds or late payments.
Takeaway: When drafting a service agreement for your business, financial details are typically the top concern. You want to make sure your business has clear terms on payment to make sure your business gets paid in a timely manner.
2. Indemnification and Limitation of Liability
Another common client request is to limit their exposure if something goes wrong when providing services. Clients want to include liability caps and language about indemnification to define who bears responsibility for any losses or third-party claims.
Takeaway: After financial issues, clients want to know they are protected in case something goes wrong when providing services. Consider requesting limitation of liability and indemnification clauses in your service agreement.
3. Confidentiality and Non-Disclosure
Protecting sensitive business information is a high priority of clients. Requesting confidentiality and non-disclosure clauses is common, so they can safeguard against any proprietary data their business has.
Takeaway: The lawyer you hire will likely include confidentiality provisions, but make sure you understand them and align their terms with your business’ priorities.
4. Non-Compete and Intellectual Property Ownership
Service-based relationships often involve creating proprietary work product. Because of this, clients often ask to include IP ownership and non-compete clauses. These clauses will address who owns the work product and any limitations on working with competitors.
Takeaway: Proactively address these issues in your service agreement since your clients will likely want them addressed. Make sure it is clear who owns the work product being delivered in the engagement.
5. Cancellation and Termination Policies
Clients want their agreements to clearly state how either party can end the contract. These clauses will address terms covering notice periods, any type of termination fees, and other consequences for terminating the contract early.
Takeaway: Make sure you think through what happens if either party wants to end a contract. If you’re a service provider with upfront costs, you may want to include termination fees or consequences to protect you.
6. Service Level Agreements (SLAs)
SLAs are becoming common features of service agreements, so many clients want to include them in their agreements to proactively control the language. SLAs can also be great selling points since clients will fully understand the level of service they will receive.
Takeaway: Consider including SLAs in your agreement. This may give clients the peace of mind when thinking about hiring your business since they will understand the level of service they will receive. It may help you win more deals.
7. Use of Promotional Materials
Another common term addressed is the use of promotional materials. Business owners will often want to use their client’s name or logo on marketing materials, and it is important to set rules around this within your service agreement. This may include a requirement to get permission.
Takeaway: Consider addressing the use of promotional materials in your agreement. Setting up rules around this will make everything clear and avoid any situations that could jeopardize the relationship.
8. Scope Modifications
Finally, clients frequently want to address any changes in scope to projects and how those will be handled (especially around billing). As relationships evolve, scopes of engagements can change, and it is always recommended to include language in the contract that addresses this and sets rules for it.
Takeaway: If you think your relationship may evolve with clients over time, consider adding language around scope modifications and how billing will be handled. You do not want any contract language in place that could limit your ability to grow your relationships or set bad expectations if they ask for work outside of the scope.
Why This Matters
Even when many provisions in service agreements are standard, do not assume they will be covered. Proactively work with your lawyer to make sure your agreement includes all of the language and clauses you want to set your relationships up for success.
Get Help With Your Service Agreement
If you need a service agreement drafted, consider using ContractsCounsel’s platform to post a job and receive multiple proposals from lawyers in our network. All lawyers are vetted by our team and work with clients on a daily basis.
