Service Provision Agreement for the United States

Service Provision Agreement Template for United States

A Service Provision Agreement is a legally binding contract used in the United States that establishes the terms and conditions under which one party provides specific services to another. This agreement outlines service scope, payment terms, performance standards, and liability allocation, while ensuring compliance with federal and state-specific regulations. It includes provisions for dispute resolution and termination conditions, making it a comprehensive framework for service-based business relationships.

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What is a Service Provision Agreement?

The Service Provision Agreement serves as a fundamental legal instrument in U.S. business operations, establishing clear parameters for service-based relationships. This document is essential when any business or individual engages another party to perform specific services, whether one-time or ongoing. It protects both parties by clearly defining expectations, responsibilities, and remedies while ensuring compliance with applicable federal and state laws. The agreement typically covers service scope, quality standards, payment terms, intellectual property rights, and liability limitations.

What sections should be included in a Service Provision Agreement?

1. Parties: Identifies and defines all parties to the agreement, including full legal names and addresses

2. Background/Recitals: Provides context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Services: Detailed description of services to be provided

5. Payment Terms: Fees, payment schedule, and payment methods

6. Term and Termination: Duration of agreement and conditions for termination

7. Representations and Warranties: Statements of fact and promises made by each party

8. Liability and Indemnification: Allocation of risks and responsibilities

9. Governing Law: Applicable jurisdiction and dispute resolution

What sections are optional to include in a Service Provision Agreement?

1. Service Levels: Performance metrics and standards for technical or measurable services

2. Intellectual Property Rights: Ownership and usage rights of IP when services involve creation or use of intellectual property

3. Data Protection: Privacy and data handling requirements when personal or sensitive data is processed

4. Insurance: Required insurance coverage for high-risk services or regulatory requirements

5. Non-Compete: Competitive restrictions when protecting business interests from competition

What schedules should be included in a Service Provision Agreement?

1. Schedule of Services: Detailed scope of services and deliverables

2. Fee Schedule: Detailed breakdown of fees and charges

3. Service Level Agreement: Technical performance metrics and requirements

4. Change Control Procedure: Process for managing changes to services

5. Data Processing Agreement: Detailed data protection obligations and procedures

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

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Free to use

Relevant legal definitions

Clauses

Relevant Industries

Information Technology
Professional Services
Healthcare
Marketing
Facilities Management

Relevant Teams

Legal
Procurement
Operations
Finance
Compliance

Relevant Roles

Chief Executive Officer
Chief Operating Officer
Procurement Manager
Legal Counsel
Project Manager
Contract Manager
Risk Manager

Industries

Contract Common Law: Fundamental principles governing contract formation, performance, and enforcement in the United States legal system

Uniform Commercial Code (UCC): Standardized set of laws governing commercial transactions, particularly relevant if the services involve goods

Fair Labor Standards Act (FLSA): Federal law establishing standards for wage and hour requirements, particularly important for worker classification

Equal Employment Opportunity Laws: Federal laws prohibiting workplace discrimination and ensuring equal opportunity in employment

Independent Contractor Regulations: Federal and state regulations governing the classification and treatment of independent contractors

HIPAA: Health Insurance Portability and Accountability Act - Federal law governing privacy and security of healthcare information

State Privacy Laws: Various state-specific laws governing data privacy and protection (e.g., CCPA in California)

Federal Trade Commission Act: Federal law prohibiting unfair or deceptive practices in commerce

Patent Act: Federal law governing the protection of inventions and innovative processes

Trade Secrets Laws: Federal and state laws protecting confidential business information that provides competitive advantage

State Contract Laws: State-specific regulations governing contract formation, enforcement, and interpretation

State Licensing Requirements: State-specific requirements for professional licensing and business operations

Statute of Frauds: Legal requirement that certain contracts must be in writing to be enforceable

Dispute Resolution Laws: Federal and state laws governing methods of resolving contractual disputes, including arbitration and mediation

Insurance Requirements: State and industry-specific insurance requirements for service providers

Industry-Specific Regulations: Specialized regulations applying to particular industries or types of services

Tax Laws: Federal and state tax regulations affecting service provision agreements and contractor relationships

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Legal Services Contract

A U.S.-governed agreement between a legal service provider and client establishing terms of legal representation and service delivery.

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What is a Service Provision Agreement?

What sections should be included in a Service Provision Agreement?

What sections are optional to include in a Service Provision Agreement?

What schedules should be included in a Service Provision Agreement?

Authors

Alex Denne

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