General Service Contract

What is a service contract template in the UK?

A contract for services template is a legal agreement between a person who orders certain services and a person who offers provision of such services in exchange for remuneration. A standard service agreement contract template defines the scope of services to be provided, payment structure, liability, confidentiality and termination provisions.

This service contract template is being commonly used in the UK for provisions of the following:

• consultancy services;
• bookkeeping services;
• software development or IT services;
• various types of professional services such as accounting, legal, and audit
• freelance services;
• marketing services, etc.

What should be included in this sample contact for services?

Every service agreement sample should have a number of important legal clauses without which a final document cannot be complete or legally valid. A sample service agreement contract is subject to general principles of contractual law. However, inclusion of certain clauses may require additional compliance with other effective legislation, such as the Data Protection Act or the Unfair Contract Terms Act 1997.

Scope of Services

The text of every service contract agreement template shall define the exact scope of services the service provider shall deliver to the client. This includes:

• brief description;
• key milestones and deadlines (for complex services such as software development or audit);
• engagement of subcontractors clause;
• location for provision of services.

Fees

The client should pay for the provision of services in the amount and according to the frequency specified in the original contract for services template. A solid template should include information about:

• type of the fees (monthly, weekly, daily, per milestone);
• fee amount in pounds, exclusive of VAT;
• list of acceptable payment methods;
• applicable interest rate, in case the client fails to pay the invoice before the specified due date;
• invoicing period.

Parties should be very careful when setting up an interest rate for late payments. A standard interest rate is usually in line with the base rate provided by the Bank of England quarterly.

Confidentiality Obligations

Inclusion of the present clause is typical for a service agreement template UK. The reasoning behind such a clause is that either party’s sensitive information shall remain duly protected against subsequent disclosure.

Depending on the nature of services provided, the risk of potential disclosure may differ significantly. For example, an auditor under the accounting services contract has access to a lot of business and trading information which has a significant value for a client and should not be disclosed. On the other hand, the risk of disclosure is lower in the case of providing carpentry services for households across the UK.

Termination

Every sample contract for services agreement should outline terms and conditions for its termination. The termination under the services contract template is possible in either of the following ways:

• Mutual Termination. This is when both parties agree in writing to terminate the contract before the agreed termination date.
• Failure to Remedy. If either party commits a material breach, such a party should be given a sufficient remedy period to rectify the damage. Usually the minimum standard remedy period in the UK should be at least 21 calendar days. If upon expiration of the remedy period the breach is not rectified, this service contract terminates immediately.
• Termination Notice. If either party for any reason is not satisfied with the contract or wishes to end it, that party can do so by serving a prior written notice to the other party. The notice period can be of any duration from a couple of days to several months. This is something that parties should agree on in this service agreement contract template.

Limitation of Liability

Inclusion of a limitation of liability clause is essential for any sample contract for services. Failure to do so results in statutory rules that shall apply to each party’s liability under this agreement. Since parties want to gain more predictability, they usually choose to decide on a limitation of liability clause directly in the contract. To do so, the following should be discussed:

• If there should be any liability for loss of profit, market, business, contract, revenue or indirect loss of either party;
• If the service provider’s liability under this contract is limited to a certain fixed amount;
• if the service provider can claim damages from the client for the losses incurred due to the client’s breach of any statutory duty.

Who shall use this sample contract for services agreement​?

This service contract template can serve as a helpful legal tool for:

• consultants offering professional services to the clients;
• freelancers looking for a solid legal template for the provision of services;
• Small businesses searching for a customisable template to sign with clients and customers on a daily basis;
• sole traders and entrepreneurs providing professional services independently;
• UK startups looking for a simple service contract agreement sample.

This document cannot be used, however, for employment of employees or engagement of workers in the UK. In such a case an employment contract or zero-hours contract template should be used instead.

Key features of this sample of service agreement

By customising this sample contract for services UK with FasterDraft, you get a professionally drafted document with the following benefits:

• a template created by qualified solicitors;
• a document that is fully aligned with the principles of UK contractual law and the Unfair Contract Terms Act 1977;
• a template with a clear structure and professional wording;
• a document that can be customised for the provision of various types of services across the UK;
• a template that includes all necessary clauses;
• a document that is customisable for B2B and B2C service agreement contract templates.

How to customise this sample of service agreement with FasterDraft?

To get a fully customisable document template, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format – service agreement sample PDF or Word.
4. E-sign the document.
5. Make a payment.

The document is ready for instant download and use immediately after the purchase.