Service Agreement Template for the UK

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What is a Service Agreement?

A service agreement is a legally binding contract that sets out the terms and conditions for one party providing services to another. It states what services will be delivered, how much they cost, when invoices fall due, and who carries which risk. It protects both the service provider and the customer under the law of England and Wales.

You'll find service agreements across B2B SaaS, IT consultancies, tech services, marketing agencies, and project-based sectors like construction and property. A good template covers quality standards, delivery timeframes, and what happens when something goes wrong. It also provides for confidentiality, limitation of liability, and dispute resolution, and it reflects rules on unfair contract terms under the Consumer Rights Act 2015 and the Unfair Contract Terms Act 1977.

Where the services involve personal data, the agreement should set out privacy and data protection obligations in line with the Data Protection Act 2018 and UK GDPR, so both parties know who controls and processes what. If you supply a product alongside a service, say software with ongoing support, the agreement should make clear which terms attach to the product and which to the service provision.

If you need a starting point, this page explains what a service agreement does, when to use one, and the clauses it should include before you sign.

Sample clauses: standard wording in a UK service agreement

6. Charges, Invoicing and Payment
6.1 In consideration of the Services, the Client shall pay the Supplier the charges set out in Schedule [1], being [£[amount] per [day/month]] or the fixed price of [£[amount]], together with pre-approved expenses reasonably and properly incurred in performing the Services.
6.2 The Supplier shall invoice the Client [monthly in arrears] and the Client shall pay each correctly rendered and undisputed invoice in cleared funds within [30] days of the date of the invoice, to the bank account nominated in writing by the Supplier.
6.3 All sums stated are exclusive of VAT, which shall be added at the prevailing rate against a valid VAT invoice, and the Client shall pay all amounts due in full without set-off, counterclaim or deduction except as required by law.
6.4 Without prejudice to any other remedy, the Supplier may charge interest and fixed sum compensation on late payment under the Late Payment of Commercial Debts (Interest) Act 1998, and may suspend the Services on [10] Business Days' written notice where an undisputed invoice remains unpaid.

11. Limitation of Liability
11.1 Nothing in this Agreement limits or excludes either party's liability for death or personal injury caused by negligence, for fraud or fraudulent misrepresentation, or for any other liability that cannot lawfully be limited.
11.2 Subject to clause 11.1, neither party shall be liable to the other for loss of profit, loss of anticipated savings, loss of business opportunity, or any indirect or consequential loss, in each case whether arising in contract, tort (including negligence) or otherwise.
11.3 Subject to clause 11.1, the Supplier's total aggregate liability arising out of or in connection with this Agreement shall not exceed [the total charges paid and payable in the [12] months preceding the date on which the claim arose] or [£[amount]], whichever is the [lower].
11.4 The parties acknowledge that the limitations in this clause 11 are reasonable having regard to the charges and the allocation of risk agreed between them, and that each party has been advised to insure against the excluded risks.

Illustrative extract showing typical drafting under the law of England and Wales. Documents generated with GenieAI are tailored to your rules, standards and context.

Frequently Asked Questions

When should you use a Service Agreement?

Use a service agreement any time you're providing or receiving ongoing professional services in England and Wales. Common cases include hiring consultants, outsourcing IT support, engaging a marketing agency, or bringing in maintenance contractors. It matters most when the work involves recurring fees, complex deliverables, or access to sensitive information.

It also helps when you take on a long-term partner, such as a reseller, implementation firm, or managed service provider, where the relationship runs across multiple projects and renewals into 2026 and beyond. Setting the terms once gives both sides a stable base to work from.

Put the agreement in place before work begins. Waiting until a disagreement arises leaves both parties exposed. For a service provider, a clear form of agreement guards against scope creep and unpaid invoices. For a customer, it sets performance standards you can hold the provider to and gives you a clear right to a remedy if the service falls short. GenieAI drafts a ready-to-sign version tailored to your own playbook, so commercial teams can agree terms with confidence and keep deals moving.

What are the different types of Service Agreement?

Who should typically use a Service Agreement?

  • Service Providers: Companies or freelancers who draft Service Agreements to protect their business interests and clarify delivery expectations
  • Business Clients: Organizations receiving services who review and negotiate terms to ensure value and performance standards
  • Legal Counsel: In-house or external solicitors who review and refine agreement terms to ensure compliance with UK law
  • Procurement Teams: Professionals who manage service contracts and supplier relationships within larger organizations
  • Contract Managers: Staff responsible for monitoring service delivery and managing agreement compliance day-to-day

How do you write a Service Agreement?

  • Service Details: List specific deliverables, timelines, and quality standards you expect from the service
  • Company Information: Gather accurate legal names, registered addresses, and contact details for all parties
  • Payment Terms: Define rates, payment schedule, invoicing process, and any late payment penalties
  • Performance Metrics: Outline how service quality will be measured and monitored
  • Risk Management: Consider liability limits, insurance requirements, and termination conditions
  • Compliance Check: Our platform ensures your agreement includes all required elements under English law, minimising drafting errors

What should be included in a Service Agreement?

  • Parties & Services: Full legal names, addresses, and detailed scope of services to be provided
  • Payment Terms: Clear pricing, payment schedule, and consequences of late payment under UK law
  • Duration & Termination: Contract start date, length, renewal options, and conditions for ending the agreement
  • Performance Standards: Specific service levels, quality metrics, and delivery timelines
  • Legal Protections: Liability limits, indemnification, confidentiality, and data protection under GDPR
  • Dispute Resolution: Methods for handling disagreements, governing law, and jurisdiction clauses
  • Compliance Note: Our platform automatically includes all these essential elements in every Service Agreement generated

What's the difference between a Service Agreement and an Agency Agreement?

A service agreement and an agency agreement look similar, yet they serve different purposes under the law of England and Wales. Both involve one party doing work for another, but the legal relationship and the risk allocation differ. The table below sets out the key distinctions.

FactorService agreementAgency agreement
Legal relationshipCreates a client-contractor relationship; the service provider stays independent.Makes one party a legal representative of another, with authority to act on their behalf.
Scope of authorityThe provider can only perform the specified services.The agent can negotiate deals, enter contracts, and make binding decisions for the principal.
Liability structureEach party bears its own liability.The principal is generally liable for the agent's authorised actions.
Fiduciary dutiesThe provider must meet the contract terms.The agent owes fiduciary duties to act in the principal's best interests.

If you're unsure which you need, pick the service agreement where one business delivers defined work for a fee, and the agency agreement where one party will represent the other and bind it to third parties.

Why Trust GenieAI?

  • 244,337 businesses have trusted GenieAI to draft 365,360 legal documents (and growing).
  • Across every document GenieAI reviews, the median document carries 4 high-priority risks.
  • Vague or ambiguous wording is the single most common problem, at 14.6% of all issues raised.
  • GenieAI reviews a full contract, clause by clause, in typically under two minutes.

Source: GenieAI internal data Updated 6 hours ago

Reviewed by

Swetha Meenal

Legal Engineer, GenieAI

Swetha Meenal profile photo

A lawyer, legal researcher and legal tech founder, Swetha has built AI products deployed inside Tier 1 firms and enterprises. She ensures GenieAI's alignment with the latest regulation and executes testing on the legal robustness of Genie output.

Reviewed by

Imad Mohammed Nazar

Legal Engineer, GenieAI

Imad Mohammed Nazar profile photo

A Skadden-trained M&A lawyer, Imad advised on cross-border transactions and contractual risk before moving into legal AI. He reviews GenieAI's output for compliance and enforceability across our 150+ supported jurisdictions, as well as facilitating external benchmarking.

Jurisdiction

England & Wales

Publisher

GenieAI

Cost

Free to use

Last updated

About the Service Agreement

  • Service Details: List specific deliverables, timelines, and quality standards you expect from the service
  • Company Information: Gather accurate legal names, registered addresses, and contact details for all parties
  • Payment Terms: Define rates, payment schedule, invoicing process, and any late payment penalties
  • Performance Metrics: Outline how service quality will be measured and monitored
  • Risk Management: Consider liability limits, insurance requirements, and termination conditions
  • Compliance Check: Our platform ensures your agreement includes all required elements under English law, minimising drafting errors

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