It is important for a business to lay out its expectations for third parties before undertaking any business venture or pursuing a business opportunity. Drawing up a proper Service Agreement can mean the difference between a solid business relationship where the expectations of an individual or company you are working with are clearly set out and a relationship based on uncertainty which can bring about unwanted and unintended consequences.
A Service Agreement, also known as a Service Level Agreement, helps define exactly what is required from an individual or a company, when by and for how much.
Failure to abide by a Service Agreement allows an innocent party to take legal action against a party who breaches that contract.
Unlike an employment contract, the focus of a Service Agreement is on the performance and service quality a business expects from a third party and what that third party can expect in return. It can also cover things such as intellectual property.
It is important to ensure that the terms of Service Agreements drawn up have a strong legal basis.
Contact Tim Field
Our Commercial and Corporate Finance Team have significant experience in preparing Service Agreements. If you would like a free 15-minute no obligation chat with one of our team, please do not hesitate to us.
