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What are some common clauses in a service agreement?

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Quick Answer

Some common clauses in a service agreement are termed after the issues they address, such as services provided, terms of agreement, capacity and severability. A general agreement should include these and other clauses and can be tailored to specific circumstances and parties.

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What are some common clauses in a service agreement?
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Full Answer

The services provided clause details what is meant by such services. In the clause, the service provider agrees to perform such services for the other party pursuant to the rest of the contract. The receiver of the services agrees to engage or hire the service provider in this clause. The terms of agreement clause defines all the necessary terms necessary for the delivery of the services such as the date and time when the services are provided and a passage stating that the agreement is to stay in force until a predetermined time or until the service is completed. If the terms of the agreement can be amended or extended pursuant the agreement of both parties, this is stated in the original terms of agreement clause.

The capacity clause sets the roles for each party and what their legal responsibilities therefore are according to these roles. This clause determines whether the provider is acting as an independent contract or an employee. The severability clause states that even if a section of the agreement is held to be invalid, such a decision does not invalidate the rest of the agreement.

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