This document is taken from the gov.uk website, and comes with the following explanation: This document provides a starting point for mutuals and commissioners working on a spin-out. They have been drafted according to a series of assumptions, to be adapted on a case by case basis by professional advisors.

If the mutual is to carry out the services as a contractor for the Local Authority, the mutual will be funded under a Services Agreement.  

The Services Agreement protects the Local Authority as the contracting authority by setting out the terms of the funding and the services to be provided, and providing remedies to the contracting authority if the terms are breached. The Agreement protects the mutual as the contractor by legally binding the contracting authority to pay the fee for the services on time.

This template Services Agreement provides these protections and contains standard terms covering (amongst others): the contract period; the obligations of the parties; monitoring and reporting requirements; intellectual property and publicity; and provisions for termination of the funding arrangement by either party.

This template has been prepared to provide general guidance and information to organisations considering or undertaking mutualisation. It is  intended to be a starting point only and should not be considered a finalised legal document or as constituting legal advice. It is the responsibility of your organisation to seek legal advice and to ensure that the document is reviewed and signed off by your legal team.

The template contains a breakdown of drafting assumptions which highlight areas where additional drafting and legal advice may be required. Additional drafting is not limited to these areas and you should seek further legal guidance where you deem necessary.
Whilst we have endeavoured to ensure that the information in the template is correct, no warranty, express or implied, is given as to the templates accuracy, timeliness, completeness or fitness for a particular purpose and we do not accept any liability for errors or omissions.  Neither the Department for Digital, Culture, Media and Sport, nor Bates Wells Braithwaite shall be liable to you or anyone else for any decisions made or action taken in reliance on this document, or for any damage arising from its use.