What is generally contained in a contract for services?


Quick Answer

A contract for services generally contains identification and up-to-date contact information for the service provider and the customer, a description of the expected services, and a payment schedule, according to Law Depot. To protect the interests of the customer or service provider, the contract may include additional clauses addressing confidentiality, ownership of materials, nonsolicitation or noncompetition during a specified period.

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Full Answer

The more accurately and clearly the contract describes what the service provider is to do and the time frame for completion, the less chance there is for misunderstandings between the parties of the contract, says Law Depot. The description should detail specifically what the customer expects and what the service provider agrees to provide. The compensation details should include the pay rate and a pay schedule, along with information regarding who is responsible for providing materials, whether the payment includes any necessary taxes and whether there are financial penalties for nonpayment or poor performance.

Depending on the business or service, the customer may wish to have an agreement addressing confidentiality to protect sensitive information, explains Law Depot. Other clauses, such as noncompete or nonsolicitation, may be preferable to prevent the service provider from competing or soliciting business during the provision of services. It is also best practice to identify who retains ownership of the materials produced during the provision of services as well as specifying any division of rights.

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