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An indemnity is a contractual obligation by one party to be responsible for certain loss, damage or liability incurred by the other party. Indemnities are often heavily negotiated, and as matter of course the service provider should try give as few indemnities as possible (the customer will always be able to try to sue at common law for losses suffered even if there is no indemnity). Try to limit any indemnity that the service provider does give by carving out liability arising from the customer’s own negligence or intentional misconduct.

You should take as much time and effort as needed to make sure that your form service agreement is as favorable to your company as possible and most accurately reflects your company’s objectives. When the form is in the right shape, all you will need to do is fill in certain blanks for each new client, after having negotiated only a limited number of contract terms. The title of the agreement can be anything you see fit, whether it be a “Service Agreement,” “Client Agreement,” “Customer Agreement,” or some other title that incorporates the name of your company.

Regardless of the contract structure, however, all service agreements should address the ten important issues discussed below. Note that this article is written from the service provider’s point of view – customers reviewing service agreements may be concerned about different issues, and may have different perspectives on the issues.

Familiarizing yourself with the client’s perspective can give you a competitive edge in your negotiations. Lastly, for all of the administrative tools that you need to work as a service provider, including sample independent contractor agreements.

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