Things to remember while signing a service agreement
Khalid Khan
February 8
A lot of companies registered in Bahrain are dealing with numerous local as well as overseas clients, offering them different kinds of services, but only a few of them are diligent enough to understand that different clients have different specific requirements and needs. Therefore, a different agreement is needed every time if there are different requirements.
I will give you an example of one of my clients which is Regal Conceptz, an advertisement and marketing firm which is providing services to a wide range of clients not limited to hotels, real estate groups, universities etc. They are highly professional about their services and whenever they enter into any service agreement with anyone they ask me to guide them with their agreement draft along with advising them on their proposal.
One day I asked them why they don't alter the old draft just like other guys and get it signed so they explained the fact very often understood by people that every client has a different mindset so same draft cannot be used. I will be honest with you guys that this is very professional approach and this is the reason they are one of the best marketing and advertising firm in Bahrain.
Now coming back to the point, the following are the things which you have to remember while entering into a service agreement.
Describe Services. It must be very clearly defined what services will be provided to the client.
Payment Terms. Payment terms must be clear. It must be clearly stipulated whether payment will be done in phases or one time and what will happen in case of payment default.
Liability. It must clearly be stipulated in the agreement that what are the liabilities of the service provider and of the client.
Termination. The mode of termination and grounds of termination is also a very important point which must always be considered.
Deadlines. Some service agreements have deadlines also. As a service provider, I would always be careful with such deadlines or warranties.
Timings. A very important thing is timings of the services. It's more important if the service provider and client have different time zones.
Expenses. Sometimes there can be additional expenses too, so that must also be covered by the service agreement.
Jurisdiction. In case of a dispute where the dispute will be heard should also be clearly defined.
The above points are just to give an idea and there could be various other issues also involved so please take proper care while signing or drafting any service agreement.
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