Service Agreement (Drafting)

A provision of services agreement is a contract between two or more parties that provides that at least one party will perform a service for another in exchange for products, services, or financial compensation. Providing a detailed description of the services that are to be provided is possibly the most important part of the service agreement. There are a number of reasons for making sure this is done properly. 

Providing a detailed description of the services that are to be provided is possibly the most important part of the service agreement. There are a number of reasons for making sure this is done properly. It is important to define the services to be provided under the contract as thoroughly as possible. A company should include the state in which it was formed as well as its business structure viz. sole proprietor, corporate, LLP etc.

Features of Service Agreement:

Payment, Deposit:

The section that defines the payment terms is important and should include how much, when, and how the provider will receive compensation. Typically, the provider will require a deposit to secure the services, and include a balloon payment or series of payments over the course of the service. Make note of the payment schedule, otherwise you will likely owe late fees or be in violation of the agreement. For best practices and to ensure you receive the all services requested, ask for an itemized statement that explains the total cost. This itemized statement should be included as to the service agreement.

Scope of Services:

The scope of services section defines what services your company will receive. For example, if an apparel provider is creating swag for your startup, you will want this section to include an itemized list of products, any additional services (i.e. warehouse storage, delivery costs, etc). This section should be detailed and precise.


The amendment section details how the parties can change the agreement if the circumstances (i.e. scope of services) change over the course of the relationship. Typically, written consent of both parties is required to amend the agreement.


This section describes how the parties can terminate the relationship and who is responsible in such an incident. For example, if either party commits any illegal act, that act can constitute a  of the agreement. Or, if the service provider does not fully execute the promised services, it may be in breach of the agreement. Also, if the client does not pay for the services provided, then the client is in breach of the agreement. Or, if both parties agree by written consent to terminate the relationship without any strings attached. Basically, this section details how the parties can exit when sh*t hits the fan. 

Liability Insurance:

This provision will typically require both parties to obtain a minimum amount of liability insurance. It is important to weigh the cost of insuring at the minimum requirement versus receiving the services. If the cost is too high, you might decide to shop for a different service provider or try to negotiate the minimum down to something more reasonable.


This section protects trade secrets and any confidential information obtained during the course of the contractual relationship and beyond.

IP Ownership:

This provision outlines who owns (IP) created from the service. Typically, the parties keep any IP that they contribute. For example, the service provider keeps the IP to its process, and the client keeps its IP used to complete the service (i.e. company’s logo used to make t-shirts). Also, the client typically gets an exclusive revocable license to use/sell the IP during the term of the relationship. It is important to ensure that your company doesn’t transfer any IP to the service provider by accident.


Passport Photo

Passport photo of all parties.

PAN Card

PAN card of all parties.

Aadhar Card

Aadhar card of all parties.

Utility Bill

Utility bill of Electricity or Telephone.

Address Proof

Valid Address Proof of all the parties.


Valid Driving Licence of all the parties.

Terms and Conditions

Terms and Conditions between the parties.

Other Documents

Other documents will be intimated through e-mail.


A Service Agreement, also known a General Services Agreement, is a document between a service provider and a client. Within these agreements, the service provider and client outline their expectations for behaviour and agree to the bounds of the relationship between them.

The service agreement is designed to protect both of the parties from misunderstandings or disagreements by clearly stating how much supports will be provided, how they will be provided and what costs and fees the parties need to pay.

Services agreements are arrangements between two or more parties and are sometimes enforceable at law. Contracts are a formal arrangement between two or more party that, by its terms and elements, are always enforceable at law.

A Master Servicers Agreement (“MSA”) is contract between two parties with an ongoing project or business relationship that offers a flexible system for completing a project over time when there will be decisions to be made along the way.

Inbound Service Agreements means any contract to which the Company is currently a party, under which the Company acquires, licenses or obtains (contingent or otherwise) forbearances under any Intellectual Property Right of a Third Party.

A service contract is a promise to pay or promise to pay for certain repairs or services. A service contract may be arranged at any time and always costs extra.