Service Agreement: What to Consider

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A service agreement is one of the most common contracts under which one party (usually the Contractor) undertakes to provide certain services to the other party (usually the "Customer" or "client") on certain conditions, for a certain period and, of course, for a fee.

The contract for the provision of services provides that the service is consumed in the performance of a certain activity or the performance of a certain action. That is, the service must have a specific result received by the customer from the contractor.

A Service Agreement is one of the most common contracts, where one party (typically the Service Provider) commits to delivering specific services to another party (usually the "Client" or "Customer") under certain conditions, for a defined period, and, naturally, for a fee. This could involve software development, candidate sourcing for outsourcing, development of the service agreement by lawyers, and so forth. The Service Agreement can cover legal, accounting, auditing, various consulting, marketing, advertising, or IT services, as well as recruitment services.

The key aspect of the agreement lies in accurately defining the terms under which the services will be rendered. When entering into a Service Agreement, it's advisable to agree with the counterparty on the contract's subject matter, pricing and payment terms, and service delivery timelines. Additionally, the contract should aptly reflect the parties' agreements, provide provisions for influencing the non-performing party, and accurately define payment terms (including for currency transactions, especially relevant in dealings with foreign counterparts). For example, large IT companies, operating under service agreements or software licensing agreements, must navigate complex arrangements, balancing between working with individual entrepreneurs or gig specialists and foreign counterparts.

Where lawyers discern what's correctly and incorrectly reflected in the agreement, whether all material circumstances are included? Correct, in case law. Contractual practice is one of our company's most active areas of operation. We offer not only agreement drafting or review but also ongoing support after the agreement is concluded. We have accumulated thousands of hours of experience participating in court disputes between parties to agreements. We also possess thousands of hours of negotiation experience between parties when entering into agreements. We study relevant case law (court decisions in which we did not participate), which adds up to millions of hours of experience.

Therefore, involving an experienced lawyer in the agreement preparation process combines thousands of hours of experience that will undoubtedly bolster your contract, and your chances of obtaining what you expect from the counterparty are higher.

In this article, we'll discuss the nuances of entering into a Service Agreement in Ukraine and share our legal advice. We hope this will be useful for you, but it's worth noting that this is only a description of our experience, not the experience itself. Therefore, if you have any questions, please feel free to contact us—we'll save you time that would have been spent on an independent information search, provide quality assistance, and professionally address your needs.

Service Agreement: Key Considerations

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With all respects,
Team of "Pravova dopomoga" law firm

Publication date: 14/07/2023

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