What should client service agreements include?
How do client service agreements protect both parties?
What happens if a client service agreement is breached?
A client service agreement is a legally binding contract that establishes the business relationship between a service provider and their client by outlining the terms and conditions of the services.
A comprehensive client service agreement outlines the scope of services, pricing structure, and payment schedule. It also covers confidentiality terms, termination conditions, and dispute resolution procedures.
Client service agreements help prevent misunderstandings for both parties by clearly defining what services will be provided, payment terms, and deadlines. These agreements can also limit the service provider's liability and protect the client from unexpected costs. The agreement also addresses intellectual property, confidentiality, and liability to safeguard each party's interests.
If a client service agreement is breached, the other side can ask for compensation or request that the agreed-upon services be completed. Most agreements include a plan for resolving issues, often starting with a discussion or mediation before going to court.
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