Legal Agreements

Sample Format of Dealership Agreement

A Service Agreement is a written contract establishing the terms and conditions of a working arrangement between a contractor and a client. This Agreement outlines the specific service to be provided by the contractor in exchange for compensation.

Download Dealership-AGREEMENT Format

You can also download Dealership-AGREEMENT Format in the PDF formats.

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If either Party breaches the terms of the Service Agreement, it is recommended to initially communicate and convey to the other Party in a civil and non-offensive manner. Request that they fulfil their obligations outlined in the Agreement and provide a reasonable notice period to rectify the situation. If the offending Party fails to comply, legal action for breach of contract may be pursued. Having a witness sign the Service Agreement can lend credibility to the document when seeking legal enforcement.

Importance of a Service Agreement

1. For Contractors: If you are a contractor offering services, a Service Agreement is essential for clearly defining the service and pricing terms to your client. It helps protect your interests and ensures that both parties have a mutual understanding of their obligations and expectations.
2. For Clients: As a client, if your contractor does not initiate a written agreement, it is recommended that you create one yourself. A Service Agreement provides clarity, prevents future disagreements, and holds both parties accountable for their roles and responsibilities.

Applicability

A Service Agreement can be used for single assignments, projects with specific end dates, or ongoing work engagements.

Understanding a Service-Level Agreement

A service-level agreement (SLA) can be used in commercial agreements to establish the expected service standards between a client and a service provider. This Agreement outlines quality standards, response times, delivery schedules, and more. Alternatively, you can incorporate the service standards as additional clauses within the Service Agreement provided by Enterslice.

Parties Involved in a Service Agreement

A Service Agreement typically involves two parties: the contractor and the client. The contractor is responsible for delivering the service, while the client compensates the contractor for their work. Both parties can be individuals or organizations. In some instances, a client may comprise multiple individuals (e.g., a married couple), and a contractor may involve multiple partners who all sign the Agreement.

Understanding a Contractor

A contractor refers to a skilled individual or organization that offers services to other parties. Often, individual contractors are self-employed and run their own businesses. When organizations hire contractors, they engage them as external workers for a defined period or project rather than as regular employees. This arrangement allows clients to access specialized services without the need to hire permanent staff. Contractors can come from various industries and may include laborers, skilled tradespeople, and freelancers.

Elements of a Service Agreement

To create an effective Service Agreement, it is important to address the following details:

1. Service duration: Specify whether the service is for a single job, a specific period, or an ongoing basis.
2. Service details: Clearly describe the service to be provided by the contractor.
3. Contractor and client information: Provide the names and addresses of both parties, indicating whether they are individuals or companies.
4. Billing details: Outline the payment terms, including the contractor’s fees, payment schedule, and any applicable interest rates for late payments.
5. Notice periods: If both parties agree to the possibility of early termination, specify the number of days written notice required.
6. Expenses: Decide if the client will reimburse the contractor for reasonable work-related expenses and whether the contractor needs prior approval to incur such expenses.
7. Intellectual property ownership: Determine who owns the intellectual property rights to any work created by the contractor.
8. Confidentiality: Specify whether the contractor is required to keep client information confidential.
9. Additional clauses: under this clause any other relevant clauses, such as the expected level of service from the client.

SAMPLE FORMAT

THIS AGREEMENT (the “Agreement”) is made and entered on __________ [Insert date] between ________ [Insert Company Name] having its registered office at __________ (hereinafter referred to as the Company), which expression shall unless it is repugnant to the context or meaning thereof, be deemed to mean and include its successors and assigns) of the ONE PART and _____________ [Insert name & address of the service provider] (hereinafter referred to as the Service Provider), which expression shall, unless it is repugnant to the context or meaning thereof, be deemed to mean and include its successors and assigns) of the OTHER PART.

WHEREAS the Service Provider is providing services related to _______________ (Details of business).

WHEREAS the Company has approached the Service provider to provide services at __________ (Rate of Service).

WHEREAS, each Party is duly authorized and capable of entering into this Agreement.

NOW, THEREFORE, in consideration of the above recitals, the Parties hereby agree as follows:

1. The scope of Services. The Service Provider is to provide the Company with the following services (the “Services”):

[Describe the services]

[Describe additional rights and responsibilities of both parties]

[Describe the timeline, if any, including a “time, is of the essence” clause]

• Compensation. Company shall provide compensation to the Service Provider at a rate of Rs._________ for the Services rendered per ……. (month/qtr./annually). Service Provider shall provide the Company with an invoice upon completion of the Services. Payment for the Services is due within ____ [Number of Days] days of the date of the Service Provider’s invoice.
• Term/Termination. This Agreement shall commence on ______ [Commencement Date] and remain in effect until the Services are completed. This Agreement may be extended by mutual written consent of both parties. If either Party seeks to terminate this Agreement, the terminating Party must provide ______ [Insert Days] days’ notice to the other Party.
• Independent Contractor Status. The Service Provider is serving as an independent contractor in providing the Services. Under this Agreement, the Service Provider is neither an employee nor a partner of the Company.
• Proprietary Information. All work performed under this Agreement (“Work Product”), including without limitation all notes, reports, documentation, drawings, computer programs, inventions, creations, works, devices, models, work-in-progress, and deliverables, will be the sole property of the service provider, and Company hereby assigns to the service provider all right, title and interest therein, including but not limited to all audiovisual, literary, moral rights and other copyrights, patent rights¹, trade secret rights and other proprietary rights therein. The Company retains no right to use the Work Product and agrees not to challenge the validity of the service provider’s ownership of the Work Product.

Company hereby assigns to the service provider all rights, titles, and interests in any and all photographic images and videos or audio recordings made by the service provider during Company’s work for them, including, but not limited to, any royalties, proceeds, or other benefits derived from such photographs or recordings.

1. Notice. All notices required or permitted under this Agreement will be provided in writing and delivered to both parties.
2. Governing Law. The laws of the State of _____________ [Name of the Governing State] govern all matters arising out of or relating to this Agreement and the transactions it contemplates, including, without limitation, its interpretation, construction, validity, performance, and enforcement.
3. Assignment/Delegation. The Company may not assign any of its rights under this Agreement or delegate any performance under this Agreement, except with the prior written consent of the Service Provider. Any purported rights assignment or performance delegation in violation of this section is void.
4. Entire Agreement. This Agreement constitutes the entire Agreement between the parties with respect to the subject matter of this Agreement and supersedes all other agreements, whether written or oral, between the parties.

Service Provider’s name: _________________

Service Provider’s signature: _________________

Representative: _________________

Date: _________________

Company name: _________________

Company signature: _________________

Representative: _________________

Date: _________________

Conclusion

In conclusion, a well-drafted Service Agreement is crucial for clearly understanding contractors and clients. It protects the interests of both parties, ensures transparency, and serves as a valuable reference in case of disputes or breaches of contract.Creating a Service Agreement establishes transparency and accountability between contractors and clients. It provides a written record of the agreed-upon terms and conditions, reducing the likelihood of disputes or misunderstandings that could arise in the absence of a formal agreement.

FAQs

Download Dealership-AGREEMENT Format

You can also download Dealership-AGREEMENT Format in the PDF formats.

Download Pdf

1. https://ipindia.gov.in