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Service Level Agreement

What Does an Agreement of Service Covers?

This blog states the definition of a service agreement. It also explains the provisions of Master service agreements as well as its parameters.

A services agreement is a written contract between a client and a service provider. This document, which is also known as a service contract or a general services agreement, is legally enforceable and protects both the provider and the client.

This contract outlines the services that the supplier will deliver as well as the project’s timeline and pay. Most service contracts detail both parties’ rights and obligations, as well as liability and confidentiality rules. Many also talk about what to do if one of the parties breaks the contract.

Parameters to Make a Agreement of Service Legally Enforceable:-


  • Offer and Acceptance

The contract must include one party’s proposal and the other party’s acceptance of the same offer. Any contract revisions must be agreed upon by both parties, and no one should be forced to accept the conditions. The terms indicate that the agreement is intended to be binding on both parties. A contract cannot be formed if one of the parties is not serious.

  • Mutual consent

The offer and approval must be accepted by all parties without fear of intimidation or coercion. All parties must agree on the exact terms.

  • Consideration 

For something to be true, it must pass between the two parties. The most common type of consideration is money, but it can also be items or services. Both parties must share something, such as money exchanged for a service. If only one side compensates the other, the arrangement is a gift rather than a contract.

  • Competence

No one should be minor or unable to comprehend what they are committing to. Both parties must understand the terms of the agreement. If one of the parties is deemed incompetent, the contract is void.

  • Legal purpose

A contract should not contain any criminal activities, and both parties must be able to secure it plausibly. If the agreement is based on something that is highly implausible, any party can amend the terms as they see fit.

When Is a Services Agreement Necessary?

When your company provides services to another organisation or when you hire another individual or company to conduct services for your company, you can prepare a services agreement. Services agreements might cover one-time deliverables over a short period of time or ongoing relationships over a lengthy period of time. You should always sign a services agreement before beginning any consulting or other services, regardless of what it covers. You may set expectations and secure protections for both parties by taking the time to prepare a mutually beneficial services agreement in advance.

Purpose Of A Standard Agreement of Service

A basic Master Service Draft is designed to be a one-size-fits-all document that covers the majority of client engagements. This template establishes a consistent foundation for legal agreements between the parties. A well-written standard service contract can be used in a variety of situations.

It’s also supposed to serve as a starting point for any future conversations. The conditions of the standard agreement may be negotiated by a larger company. The time it takes to reach the acceptance stage of a client agreement is reduced when you have a template ready to go.

Standard Agreement of Service Components

Standard Service Agreement India should include all of the terms of the contract as well as standard legal clauses. It should spell out all of the parties’ responsibilities and ensure that they are in agreement. A conventional Service Agreement normally comprises the following items:

  • Agreement duration

The length of the contract should be specified in the standard contract. This section of contract management software can be left customised if this is not a standard amongst customers.

  • Responsibilities/Work Scope

A clause that spells out all of the service provider’s responsibilities and obligations. This will cover the majority of the contract’s key terms. A well-written obligations section is essential for developing enforceable contracts and avoiding work that was not originally agreed upon.

  • Terms of payment

The cost of the services should be explicitly defined in this section if the Standard service agreement between two companies in India is monetary payment for the services. It should include hourly rates, one-time payments, product expenses, and anything else the customer is responsible for as part of the contract.

  • Term for dispute resolution

A provision on settling disputes should be included in each standard agreement. Before a lawsuit can be brought, this area may require arbitration or mediation of conflicts. Others may include a choice of law or other legal terms that define how future issues will be handled.

  • Rights to intellectual property

Your company’s intellectual property is frequently involved in service contracts. This section discusses who owns the intellectual property and any usage restrictions.

  • Indemnity

Simply put, it is a statutory provision under which one party promises to compensate another for a loss. There are significant benefits to having an indemnity clause in an agreement as to the receiving party, but these benefits can only be achieved through express and unambiguous language.

When properly put up, indemnities may afford a group of remedies that are not generally available. When crafting an indemnity provision, it is obvious that the language must be correct. However, it is clear that the rest of the contract can be examined to evaluate how well the indemnification provision, as well as other related sections, matches the safeguards provided. Of course, if you require assistance writing an indemnity, we will be happy to help.

  • Amendments or modifications

Many common Service Agreements necessitate periodic updates. To account for pricing adjustments, rate updates, or other essential changes, a clause that permits you to modify the agreement in the future can be added.

  • Termination

The typical Service Agreement should spell out how to end the contract. It will specify who, when, and how the partnership can be ended, as well as the consequences of doing so. This could include fines for early termination, liquidated damages, or other penalties.

How Do You Make an Agreement of Service?

Follow these seven steps to creating a services agreement:

  1. Name the service provider and the customer. Make sure to include all of the parties’ legal names as well as their mailing addresses.
  2. List the services that are provided. State the nature of the services briefly in the agreement’s main body. Describe the scope of the task and any deliverables in an attached schedule.
  3. Indicate the amount of remuneration and the schedule. Include payment dates or frequencies along with the payment amount.
  4. Determine which party owns the property. Whether the services comprise physical products or intellectual property (IP), specify whether ownership is assumed by the service provider or the client.
  5. Include any terms concerning confidentiality or competitiveness. If the client wants the service provider to keep the project confidential or avoid cooperating with competitors, spell out any rules the provider must follow.
  6. List any indemnity or liability limitations that apply. Any insurance requirements should be included.
  7. Execute the contract. The services agreement becomes legally binding after both parties agree to the conditions and sign the contract.

Agreement of Service Scope

A service contract clause that dictates what services the party shall receive is known as scope. Scope of work or work document is another term for the contract. Regardless of whether the Party’s business exists, the Party frequently needs to deal with third parties to perform tasks, pick suppliers, receive support and customer service, and execute a variety of other activities. You Can also Know more about the Terms of Services Draft for Online Businesses.

The scope of the service agreement offers a thorough definition of the project specifications to the party and the provider, ensuring that both parties are on the same page. Due to the inadequately worded scope of services, certain parties may suffer future consequences. A detailed definition of the services to be provided by either party, as well as their expertise, saves time for both parties and decreases the likelihood of a dispute arising from the Agreement’s terms and conditions.


The most typical type of agreement between the parties is a service agreement, which is necessary not only to control expenses but also to avoid litigation or conflicts between the parties. With the recent series of instances, it is critical for both parties to recognise that circumstances and remedies are anticipated, and even if they are not, an exception to such requirements without attaching any liabilities is required.

Why Vakilsearch?

If you’re in need of a service agreement, there’s no better choice than Vakilsearch. We provide the most comprehensive and user-friendly service agreements in the industry, backed by a team of legal experts who are always available to answer your questions.Here’s why Vakilsearch is the best choice for your service agreement needs:

1. We have a wide range of agreement templates to choose from, so you can find one that perfectly suits your needs.

2. Our agreements are highly customisable, so you can make sure they include everything you need.

3. Our team of legal experts is always available to answer your questions and help you through the process.

4. We offer a 100% satisfaction guarantee, so you can be sure you’re making the best decision for your business.

5. We have a wide range of pricing options to choose from, so you can find one that fits your budget.If you’re looking for the best service agreement solution, look no further than Vakilsearch!

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