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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.

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Insurance clauses are not necessarily standard, but they are not unusual. Customers may wish to specify what insurance is required, and in what amounts, for comfort that the service provider can meet its indemnity obligations. If the agreement requires insurance, make sure the specified coverage and amounts are reasonable ($1-2 million general liability and errors and omissions should be sufficient in most circumstances). Review the insurance provisions carefully, and seek feedback from the insurer.

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A master service agreement is when two parties agree to a contract that will settle most details and expectations for both parties. It`ll state what each group has to do to honor its end of the bargain. It`ll also show which services apply in the master service agreement. The goal of a master service agreement is to make the contract process faster. It also should make future contract agreements simpler. A master service agreement (MSA) is also called a service level agreement (SLA).

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The agreement should also indicate how often the client is required to make payments, as well as the acceptable methods of payment (for example, bank wire, money order, credit card, or PayPal). Furthermore, your service contract should make it clear how expenses will be allocated between the parties. Usually, the client will expect you to cover all expenses involved in delivering the services (including costs for parts, labor, and so forth); however, depending on the nature of your business, the client might reasonably agree to be responsible for certain expenses. You can negotiate to have the client pay for these expenses either ahead of time or as a reimbursement to the company.

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A service agreement is an agreement made by two parties that documents the agreement between them with regards to the performance of the service(s) by one party (the service provider) to the other (the principal). Service agreements are very common and can be used in a wide variety of circumstances. They set out the fundamental terms of the relationship between the principal and service provider.

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It is critical that the services are clearly specified in the service agreement so both parties are clear on what is expected of the service provider. In addition, there should be agreement on whether further services may be provided and if so the process for dealing with this.

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