Business to Business Supply of Services Agreement


Business to Business Supply of Services Agreement

This Supply of Service Agreement is designed for business-to-business use, this template carefully regulates the legal relationship between both parties and is designed to be balanced in its terms. There is little in the way of bias toward either party.

Contents of a supply of service agreement

Clauses that need to be included in a supply of service agreement include the following:

  • Price, to include the basis on which the cost is calculated and any additional sums such as VAT;
  • Payment terms, to include penalties for late payment;
  • A clear description of the services to be provided and an obligation on the part of the supplier to provide those services;
  • A timeframe for the provision of the services, including a start date and a completion date or a way of deciding when completion has occurred. The supplier will want to ensure that there is some flexibility in case they are delayed in some way;
  • Termination provisions, setting out how the agreement can be ended and also what circumstances will result in it being automatically terminated.

A number of other standard clauses are included as appropriate, to include details of the procedures to be followed when problems arise.

The force majeure clause features prominently. This is the clause that sets out what will happen in the event that unforeseeable circumstances make a contract unfulfillable.