A formal contract between a service provider and a client. Defines services, fees, timeline, warranties, and liability. Use for consulting, marketing, legal services, accounting, design — any ongoing professional service relationship.
A service agreement is a contract between a business that provides services (consultant, agency, accountant, designer, attorney) and a client. It establishes the terms, scope, payment, and legal protections for an ongoing service relationship.
For ongoing professional services. Typically B2B (business-to-business). Implies a longer relationship. Used by agencies, consultants, accountants, attorneys.
For specific projects with deliverables. Often individual freelancers. Implies project end. Used for design, development, writing — anything with a clear "done" point.
Service agreements are typically used for ongoing professional services (monthly bookkeeping, retainer marketing, ongoing consulting). Contractor agreements are for specific projects with deliverables (build me a website, design a logo).
This agreement includes a late fee provision. Most jurisdictions allow charging 1-2% per month on overdue invoices. For non-payment, send a demand letter, then sue in small claims (under $5-10k) or regular court for larger amounts.
Standard practice: yes, but they pay through the notice period (typically 30 days). For pre-paid retainers, refund any unused portion or apply to final month's services.
This agreement includes mutual confidentiality. For highly sensitive engagements, supplement with a separate NDA before sharing detailed business information.