A service contract is created when the company hires a particular individual or firm for certain specific services. These are necessary for ensuring all legal formalities are followed for the proper transaction of service and payment. It is important that the service contract is created after all terms of service are clearly explained to the individual/company concerned. Likewise, all payment and other related terms should be in accordance to the satisfaction and agreement of the individual concerned. It is also important to note that such a contract is not a legal document but is a method through which all details are clearly stated for both parties concerned.
- The service contract must state whether the required services are for long-term or short-term basis. This should contain specific information about the nature of service required.
- The deadlines and payment details should be stated in the contract. It is necessary that there is special emphasis made on this and the likely consequences to be faced if this is not followed.
- All changes to be made to the contract should be done prior to signatures made by both parties. Therefore, careful reading of all the terms and conditions is necessary.
- If there are additional requirements from the service already stated, this should be mentioned as well. There should be likewise mention of compensation to be given as well.
- The service contract should highlight the payment terms such as mode and method, after the service has been completely provided for.
- The company must also list certain perks that are to be awarded for the services acquired besides the usual payment.
- It is necessary that there is no misrepresentation of the service contract as this might lead to several complications in the future. Hence, try to keep the language precise and simple.