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Service Agreement Template

Free service agreement template for businesses providing ongoing services. Covers service scope, SLAs, payment, liability limitations, and termination provisions.

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Service Agreement


1. Parties and Effective Date

This Service Agreement ("Agreement") is entered into as of [Effective Date] by and between [Service Provider Name/Company], a [type of entity] organized under the laws of [Jurisdiction], with its principal office at [Address] ("Provider"), and [Client Name/Company], a [type of entity] with its principal office at [Address] ("Client").

2. Services

The Provider shall furnish the services described in Schedule A attached hereto ("Services"). The Provider shall perform the Services in a professional and workmanlike manner, consistent with industry standards. The Provider shall assign qualified personnel to perform the Services and shall not subcontract any portion of the Services without the Client's prior written consent.

3. Compensation and Payment

The Client shall compensate the Provider as follows: [Monthly retainer of (Amount) / Hourly rate of (Amount) / Fixed project fee of (Amount)]. The Provider shall submit invoices [monthly/upon milestone completion], and payment is due within [30] days of invoice date. All fees are exclusive of applicable taxes, which shall be the Client's responsibility.

4. Term and Renewal

This Agreement shall commence on [Start Date] and continue for an initial term of [12] months. Thereafter, the Agreement shall automatically renew for successive [12]-month periods unless either party provides written notice of non-renewal at least [60] days prior to the end of the then-current term. Fees for renewal terms may be adjusted with [30] days' written notice.

5. Limitation of Liability

EXCEPT FOR BREACHES OF CONFIDENTIALITY OR INDEMNIFICATION OBLIGATIONS, NEITHER PARTY SHALL BE LIABLE FOR ANY INDIRECT, INCIDENTAL, SPECIAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES. The Provider's total aggregate liability under this Agreement shall not exceed the total fees paid by the Client in the [12] months preceding the claim. This limitation applies regardless of the theory of liability.

6. Termination for Cause

Either party may terminate this Agreement immediately upon written notice if the other party: (a) commits a material breach and fails to cure within [30] days of written notice; (b) becomes insolvent or files for bankruptcy; (c) is found to have made a material misrepresentation. Upon termination, the Client shall pay for all Services rendered through the termination date, and the Provider shall deliver all work product and Client materials.

Signature — Party A

Signature — Party B

How to Send a Service Agreement for E-Signature

Step 1: Choose your service agreement template. Log in to ContractClaw Sign and select the Service Agreement template from your dashboard. This template is designed for ongoing business-to-business service engagements with defined terms, renewals, and SLAs.

Step 2: Customize the engagement terms. Fill in the Service Provider's company name, entity type, and address, and the Client's company name and address. Set the effective date and the initial term duration (typically 12 months). Define the auto-renewal period and the notice window for non-renewal (usually 60 days). Enter the compensation structure — choose between a monthly retainer, hourly rate with a cap, or fixed project fee. Specify invoice frequency, payment terms (Net 30 is standard), and tax responsibilities.

Step 3: Attach the Service Schedule. Create a detailed Schedule A describing the exact services to be provided, performance standards, response times, uptime guarantees, and any SLA metrics. If the engagement includes deliverables, list them with timelines. This schedule is critical — it defines what the provider is obligated to deliver and what the client can hold them accountable for.

Step 4: Review liability and termination clauses. Confirm the liability cap (typically limited to 12 months of fees paid), the cure period for material breach (usually 30 days), and the termination for cause triggers. Adjust these based on the risk profile of the engagement.

Step 5: Add signers. Enter the authorized signatories for both the service provider and the client. Include their full legal names, titles, and email addresses. For corporate signers, ensure they have the authority to bind their respective organizations.

Step 6: Send for signature. Click Send — both parties receive the service agreement via email and WhatsApp with secure OTP verification. Signers can review the main agreement and all attached schedules before signing from any device.

Step 7: Track and download. Monitor signing status in your ContractClaw Sign dashboard. Once executed, the agreement is sealed with a SHA-256 hash, RFC 3161 timestamp, and QR verification code. Download the sealed PDF anytime — it serves as the governing document for the entire service relationship.

Tips for Using This Template

  • Attach a detailed Service Schedule or Statement of Work that clearly lists all deliverables and timelines.
  • Include service level commitments (response times, uptime guarantees) if the engagement warrants them.
  • Define what constitutes a material breach to reduce ambiguity in termination disputes.
  • Consider adding a dispute resolution clause (mediation before litigation) to save time and legal costs.

Frequently Asked Questions

What is the difference between a service agreement and an SLA?
A service agreement is the overarching contract governing the relationship, while an SLA (Service Level Agreement) defines specific performance metrics like uptime, response times, and penalties for non-compliance. An SLA is often attached as a schedule to a service agreement.
Should I use a service agreement or a freelance contract?
Use a service agreement for ongoing business-to-business relationships with defined terms and renewals. Use a freelance contract for project-based work with individual contractors that has a clear start and end date.
Can I limit my liability in a service agreement?
Yes, liability limitations are standard in service agreements. However, they must be reasonable and clearly stated. Courts may refuse to enforce limitations that are unconscionable or that attempt to exclude liability for gross negligence or willful misconduct.

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Free service agreement template for Indian businesses. Covers GST compliance, TDS provisions, MSME payment terms, IT Act 2000 electronic execution, and Indian arbitration clauses.

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Disclaimer: This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction. Consult a qualified legal professional before using this document for any binding agreement. ContractClaw Sign is not a law firm and does not provide legal services.

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