Strong partnerships, mutual understanding, legal obligations, and proper scope of work are born through contracts. Every contract specifies what rights are retained, what conditions and enforced, and more. But…continue reading
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What Is a Service Contract?
Service contracts fall under many categories depending on what type of service a worker provides. For example, a standard service contract outlines the conditions and terms of labor between a contractor and a client. A contractor can be a gardener, a plumber, a handyman, etc. Another example is a consultant service contract, which is an agreement between a client and a consultant. One more example is an artist service contract, which is a deal between a graphic designer, a portrait artist, or other artists and a client. Those are just some examples of service contracts, and there are more, such as a bookkeeping service contract, a cleaning service contract, a vehicle service contract, etc. Therefore, a service agreement is a deal between a customer and a company or individual providing services. Note service providers can either work as freelancers or for companies.
According to Forbes, there were about 35% of freelance workers in the United States.
That’s about 57 million workers in total.
The number is up by 53 million since there were only 4 million independent contractors in 2014.
General Types of Services
Services are usually intangible, unlike products that shops or distributors sell. There are a variety of services that businesses provide based on what sector they belong. So, here are ten general types of services.
How To Correctly Draft a Simple Service Contract
If your business provides service to its clients or customers, you must document your relationship with them through a written general service agreement. This document will serve as a regular reference every time your company serves a client. Your contract should favor the objectives of your company. So, follow the steps below to create a simple draft of a service contract.
Step 1: Name the Parties Involved
Write the correct names of the parties involved in the contract. The contract should clearly state whether one party is a business institution or an individual. Also, companies must indicate what type of business they are in, whether they are a partnership, a limited liability company, or a corporation.
Step 2: Write the Description of Services
Make a description of your services because this is what your customer is paying you. Define in detail the services you provide to your customers. Broadly defining it may put you in a position where the client will demand services that are not part of the plan. For that reason, specifying your services helps avoid confusion. Also, the contract must include extra services if there are any along with its fees.
Step 3: Specify the Payment Fees
The agreement must specify whether the customer will pay the company on a per-project, hourly, weekly, or monthly basis. Also, the contract must indicate the number of times a client has to pay and the acceptable payment methods (e.g., credit card, bank transfer, money order, etc.). Furthermore, the contract must show how the parties will allocate the money. For example, a client may expect a company to cover the fees for delivery.
Step 4: Include the Conditions for Cancellation
All contracts have terms, so your service contract must state its term. It must express how both parties are going to terminate the deal. Writing the conditions for termination is necessary in case one party breaches the stipulations of the contract. Moreover, terminations usually happen after providing a written notice. This notice represents the number of days one party may continue before the agreement ends.
What is a customer contract?
A customer contract is a written agreement between a buyer and a seller. This type of agreement is usually under consumer protection regulations. Consumer protection laws ensure that when you purchase a particular merchandise, it must have a warranty with it. There are other purposes for a customer contract. For example, a customer may agree to buy a specific number of products from the retailer on a particular date. In other words, a customer contract serves as a guideline for the transaction between a consumer and a merchandiser.
What is a DJ service contract?
A DJ or “disc jockey” refers to a person who plays their original music combined with popular songs. A DJ service contract is a document a company uses to hire a DJ. The DJ’s role is to play some good music and entertain company guests. The fee of a DJ depends on his popularity and on the event itself. Usually, individuals or companies hire DJs for anniversaries, corporate events, reunions, weddings, etc.
What is an electrical service contract?
An electrical service contract is another type of service contract that employs an electrician to fix special equipment for a client or a business establishment. The equipment that electricians usually take care of includes generators, metering equipment, monitor equipment, motor controllers, panelboards, power supplies, switchboards, transformers, and transfer switches.
A service contract can come in many forms, and every contract depends on what type of service a customer requires. Though that is the case, all service contracts have one purpose: to protect both parties involved in it. For a customer or a client, a service contract will spell out all his expectations from the service provider. For the service provider, the contract will specify the fees for his services. So, to make things convenient for you, you can easily download one of our service contract templates above.