The Service Fee Agreement is a vital commercial document used in New Zealand business operations when establishing formal service arrangements between parties. It is particularly relevant when one party agrees to provide specific services to another for compensation. This document type is essential for businesses operating under New Zealand jurisdiction, incorporating key elements of the Contract and Commercial Law Act 2017 and other relevant legislation. The Service Fee Agreement typically includes detailed provisions on service scope, performance metrics, payment terms, and risk allocation, making it suitable for various commercial relationships from professional services to ongoing business support arrangements. It serves to protect both parties' interests while ensuring clarity in service delivery expectations and financial obligations.
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1. Parties: Identifies and provides full legal details of all parties to the agreement
2. Background: Sets out the context and purpose of the agreement, including any relevant history or relationships
3. Definitions: Defines key terms used throughout the agreement for clarity and consistency
4. Services: Detailed description of the services to be provided, including scope and any exclusions
5. Fees and Payment: Specifies the fee structure, payment terms, invoicing process, and any additional costs
6. Term and Termination: Defines the duration of the agreement and circumstances under which it can be terminated
7. Obligations and Responsibilities: Outlines the specific duties and responsibilities of each party
8. Performance Standards: Establishes the expected quality and standards for service delivery
9. Intellectual Property: Addresses ownership and usage rights of any IP created or used in providing the services
10. Confidentiality: Protects confidential information shared between parties during the service relationship
11. Liability and Indemnity: Sets out liability limitations and indemnification obligations
12. Dispute Resolution: Establishes the process for resolving any disputes between the parties
13. General Provisions: Contains standard boilerplate clauses including governing law, notices, and assignment
1. Insurance: Required when specific insurance coverage needs to be maintained by either party
2. Data Protection: Necessary when personal data processing is involved in service delivery
3. Force Majeure: Include when parties want protection from unforeseen circumstances preventing performance
4. Non-Solicitation: Added when there's a need to prevent poaching of staff or clients
5. Service Credits: Include when specific service levels are required with financial consequences for breach
6. Compliance with Laws: Required when services are regulated or require specific statutory compliance
7. Subcontracting: Include when the service provider may need to engage subcontractors
8. Change Control: Necessary for long-term agreements where service scope may need adjustment
9. Audit Rights: Include when one party needs the right to audit the other's performance or records
1. Schedule 1 - Service Description: Detailed specifications of services, including methodologies and deliverables
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment mechanisms
3. Schedule 3 - Service Levels: Specific performance metrics and service level requirements
4. Schedule 4 - Key Personnel: List of key staff members responsible for service delivery
5. Schedule 5 - Reports and Documentation: Required reports, documentation, and their frequency
6. Appendix A - Contact Details: Contact information for key personnel and authorized representatives
7. Appendix B - Form of Change Request: Template for requesting and documenting changes to services
8. Appendix C - Acceptance Testing Procedures: Procedures for accepting deliverables or completed services
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