Business Contracts5 min readFebruary 22, 2026
Service Agreement Essentials: Protect Your Business
Every service provider needs a solid agreement. Here's what to include.
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Service Agreement Essentials
A service agreement defines the relationship between a service provider and client.
Why You Need One
- Clear expectations - Avoid misunderstandings
- Legal protection - Reduce liability
- Payment terms - Get paid reliably
- Scope boundaries - Prevent scope creep
Key Sections
Services Description - What you will provide - What you won't provide - Deliverables and timeline
Payment Terms - Pricing structure - Payment schedule - Deposit requirements - Late payment fees - Accepted payment methods
Term and Termination - Contract duration - Renewal terms - Cancellation policy - Refund policy
Warranties and Liability - Service guarantees - Limitation of liability - Indemnification
Intellectual Property - Who owns the work - Usage rights - Confidentiality
Common Mistakes
- 1Vague scope of work
- 2No change order process
- 3Missing cancellation terms
- 4Unlimited revisions
- 5No payment timeline
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