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Service Agreements, Small Business Attorney, Avanta Business Law

We have all heard the story of Goldilocks and the Three Bears, Little Red Riding Hood, or even Hansel and Gretel. What do all of these stories have in common? Well, besides being children’s fairy tales that have been told for hundreds of years, they are also great examples of why boundaries are needed. In each of these stories and countless others, unsuspecting people wander into a forest or a house or somewhere where they are unfamiliar with the rules. Depending on which version of the fairy tale you are reading, the outcome can be catastrophic. This leads to a great lesson on why it is important to follow rules and respect boundaries when it comes to both your personal life and, you guessed it, your business.

When it comes to your company one of the most effective ways to establish boundaries is through service agreements. By outlining the scope of work, timelines, responsibilities, and fees, these agreements can help ensure that everyone is on the same page. Setting boundaries can be scary and difficult, especially when it comes to managing client relationships. However, putting a contractual service agreement in place that outlines exactly what is expected makes creating effective boundaries much easier. With a service agreement, you can protect your business from the metaphorical goldilocks wandering in and using your belongings. 

Business Maintenance

Contracts and service agreements are key tools when it comes to business maintenance. They provide a legal framework for parties to define the terms of their relationship. A Service Agreement is a contract that establishes a relationship between a service provider and a client. The contract sets out the terms of the services to be provided, including the scope of work, the timeline, the fees, and the responsibilities of both parties.

The purpose of a Service Agreement is to provide clarity and certainty to both the service provider and the client. It outlines the expectations of the parties, helping to prevent misunderstandings and disputes. When drafting these documents, it is essential to ensure that the terms are fair and reasonable and that they reflect the needs and expectations of both parties.

Pieces of a Service Agreement

A Service Agreement typically begins with an introduction that sets out the purpose and scope of the agreement. This may include a brief description of the services to be provided and the expected timeline. It is also key that the terms are written in Plain Language to ensure that there is no confusion about the meaning of certain words or phrases.

The body of the Service Agreement outlines the specific terms of the agreement, including:

  • The services that are being provided;
  • The fees;
  • The timeline which should be realistic and achievable, with specific milestones and deadlines;
  • The scope of work which should be clearly defined to ensure that both parties understand the specific tasks that will be performed.

Service Fees 

Make sure to clearly set the fees required in these documents. This may include a fixed fee for the entire project or an hourly rate for the time spent on the project. Any additional costs, such as travel expenses or materials, should be specified. This will help to prevent any surprises or disagreements about the total cost of the project.

The Service Agreement should also specify the responsibilities of both the service provider and the client. This may include deadlines for the client to provide information or feedback, and expectations for the service provider’s communication and updates. The agreement may also outline the consequences of any missed deadlines or failure to perform the services as expected.

Termination and Intellectual Property

In addition to the specific terms of the agreement, it is essential to include general provisions. These include issues such as termination, confidentiality, and intellectual property. The termination clause should outline the circumstances under which either party can terminate the agreement, and the consequences of termination. A confidentiality clause is a part of the document that protects any secure information that is shared between the parties during the course of the project. 

The intellectual property clause should specify who owns any intellectual property created during the project. Intellectual property refers to “any product of the human intellect” that is protected. These are things like patents, copyrights, trademarks, and trade secrets. Your service agreements intellectual property clause should ensure that everyone involved knows who owns the rights to what property.

What’s the Moral of the Story?

If there is anything we have learned from fairy tales, it is that crossing boundaries, no matter how innocent the reason may be, can cause problems. So establish boundaries early on so that both you and your clients are clear on what lines not to cross and what forests not to enter.  If you are in need of a service agreement make sure to reach out. We here at Avanta are committed to working with you to protect your small business!

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