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Free Service Agreement
A service agreement is a document that describes terms and conditions for providing a specified service between the client and the service provider/business.
This agreement is used when two or more persons or businesses agrees to provide a service. It sets out detailed work or service terms, the payment, responsbilities and conditions between both parties.
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Service Agreement FAQs
What else can a service agreement be called?
A service agreement can also be referred to as follows: consulting service agreement, general service agreement, independent contractor agreement, or service contract.
What is a service agreement?
A service agreement is used between the contractor and the client to outline the service relationship the parties.
What is the difference between an employment agreement and a service agreement?
A service agreement is generally used when a client hires an independent contractor to perform specific services and that does not create an employee and employee relationship. A service agreement should not be used between employer and employee, since an independent contractor will have more leeway in controlling how the work is done and is treated differently than an employee on the job and for taxation purposes. Moreover, the employment standards act from the Canadian provinces will not apply to independent contractors.
When should a service agreement be used?
Whenever a client hires an independent contractor to perform specific service work, the service agreement can then be used to outline this working relationship. Below are some work examples where a service agreement can be used:
- Caterer
- Wedding decorator
- Photographer
- Musician
- Janitor and cleaner
- Tax consultant
- Information technology service provider
- Web designer
- Skilled labourer such as electrician, plumber, roofer, landscaper and carpenter
- Educational and instructional providers such as music teacher, yoga and fitness instructor, and math tutor
What should be covered in a service agreement?
The following is a general outline of topics that should be covered in a service agreement:
- The Parties: List the contractor and the client’s full name and address.
- Work Details: List the service the contractor will be providing to the client in detail to ensure both sides know what type of work expectations are there for the agreement.
- Service Duration Details: List the duration of the contract between the parties. The term can be fixed term which has an end date specified or it can be for an indefinite period that will run until it is cancelled by either party.
- Cost and Payment Details: List the cost of the service charged by the contractor and how and when the contractor will be paid.
- Terms Details: List the other terms of the agreement such as initial deposit, late payment, interest payment, work expenses compensation and termination.
- Confidentiality Details: List whether the contractor will need to keep sensitive information from the client confidential.
- Intellectual Property Details: List whether intellectual property rights will be created from this agreement whether the contractor or the client will have ownership of said IP rights.
Can the terms of a service agreement be altered after signing?
Yes. However, any revisions must be mutually approved by both the contractor and the client. All changes should be documented in writing and signed by both parties to ensure clarity and to make the updated terms legally enforceable.
Do I always need a written service agreement?
In certain situations, a verbal agreement may be recognized by law, but it is far safer to have a written contract in place. Putting the terms in writing clearly outlines each party’s responsibilities and expectations, reducing the risk of disputes and serving as evidence if disagreements arise.
What are the consequences if one party does not fulfill the agreement?
If either the client or contractor fails to meet the agreed-upon terms, it may amount to a breach of contract. Depending on the circumstances and applicable laws, the other party may seek remedies such as financial compensation, ending the agreement, or enforcing the original obligations.
Who owns the intellectual property created under a service agreement?
The agreement should clearly state whether any work produced during the service—such as designs, content, software, or creative materials—belongs to the contractor or the client. Without explicit terms, ownership disputes can arise, especially in projects involving creative or proprietary output.
Must a service agreement comply with local regulations?
Yes. No matter what is written in the contract, it must meet the legal requirements of the jurisdiction where the services are performed. Clauses that conflict with mandatory rules—such as licensing laws, payment deadlines, or workplace safety standards—are generally unenforceable.
What jurisdictions can use our service agreement?
You can use our template to create a legal and valid service agreement for the following jurisdictions:
Alberta British Columbia Manitoba New Brunswick Newfoundland and Labrador Northwest Territories Nova Scotia Nunavat Prince Edward Island Saskatchewan Yukon | AB BC MB NB NL NT NS NU PE SK YT |