A contract between a business and a client that defines the services to be provided, payment terms, IP ownership, and each party's rights and obligations.
A service agreement (sometimes called a services contract or professional services agreement) is the contract that governs a business relationship between a service provider and a client. It defines what services will be delivered, how payment works, who owns the work product, what happens if things go wrong, and how disputes are resolved.
A well-drafted service agreement protects both parties. For the service provider, it clarifies payment terms (including late payment consequences), limits liability, and establishes IP ownership. For the client, it defines deliverables, sets quality expectations, and specifies what happens if the provider underperforms or fails to deliver.
Key provisions to include: scope of services (be specific — vague scope is the source of most service disputes), payment schedule and late fees, IP ownership (who owns the work when it's done), confidentiality obligations, limitation of liability, termination rights (can either party exit early and under what conditions?), and dispute resolution (arbitration or litigation, and in which jurisdiction). A poorly written or missing service agreement is the most common cause of client disputes.