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A Service Agreement, otherwise known as T&Cs, is a contract between your business and your customer. In 2025, having a comprehensive and well-drafted Service Agreement is crucial for clearly outlining expectations, protecting your rights, and providing a roadmap for efficient dispute resolution.
It can take the form of a formal contract that your customer must sign, an online tick box, or a digital agreement attached to your invoice which is confirmed upon payment. With the ongoing digital transformation, online acceptance methods such as e‑signatures have become the norm, ensuring that your agreements are both secure and accessible.
Here at Sprintlaw, we’ve drafted hundreds of Service Agreements for businesses from a variety of sectors – from creative agencies to tech start-ups. This guide explains what you need to know about Service Agreements in 2025 and how they integrate seamlessly into your business operations. For further reading on related legal essentials, do take a look at our Consumer Law resources.
Top Reasons Clients Want A Service Agreement
We’ve noticed that even longstanding businesses often contact us seeking a robust Service Agreement. The main reasons include:
- A customer has refused to pay, and without a clear contract, there’s no defined consequence for non-payment.
- Disputes arise over the scope of services, with customers expecting additional work without incurring extra charges.
- Ongoing disagreements that consume valuable time and financial resources.
- Concerns about liability and the potential for costly claims.
- The desire to protect their intellectual property and confidential business material.
In today’s fast‐paced business environment – where digital transactions and online interactions are standard – a well-structured Service Agreement streamlines payment collections, clarifies your business policies, and helps nip potential disputes in the bud. It’s an essential tool to safeguard your operations and build trust with your customers.
10 Things To Include In A Service Agreement
1. Scope
Define precisely what the job entails. For example, if you’re installing blinds in a customer’s home and they later request additional services, a clear ‘Scope’ section allows you to outline any extra costs without the need for an entirely new contract. This clarity helps prevent misunderstandings and costly disputes.
2. Term
Specify the duration of the contract and whether it applies to a one-off service or a recurring relationship. Clearly state the start and end dates, and detail any provisions for automatic extensions – a feature increasingly relevant as many businesses adopt subscription or ongoing service models in 2025.
3. Payment
Outline all payment details: when payment is due, the accepted methods (including modern digital payment solutions), and the consequences of late payment – such as the accrual of interest or suspension of services. If a deposit is required at booking, this should also be clearly stated. For more in-depth guidance on setting up clear payment terms, visit our Finance Guide.
4. Warranties
Detail any warranties associated with the goods or services provided. Are you offering extended guarantees beyond the minimum required by consumer laws, or will you rely solely on statutory warranties? If third-party goods or services are involved, specify any limitations or conditions that apply.
5. Customer’s Obligations
To ensure you can deliver your services on time, the agreement should outline clear obligations for the customer. For instance, if you are a software developer, include requirements for the customer to provide timely approvals or access to necessary systems. Also, remind them to adhere to any legal obligations that may impact the service delivery. This preventive measure helps avoid delays and streamlines project management.
6. Intellectual Property
It is vital to cover all aspects of intellectual property in your Service Agreement. Specify the ownership of any materials or content produced, and clearly address the handling of any third-party intellectual property. This protects your creative outputs in a competitive digital marketplace.
7. Liability
Determine and document who is responsible if something goes wrong – whether that be equipment failure, unforeseen injuries, or financial loss. For example, if you’re a professional photographer and equipment malfunctions result in a missed event, or if rented equipment is damaged or stolen, your Service Agreement should clearly define liability limits and the role of insurance. This clarity mitigates prolonged disputes and reduces legal risks.
8. Dispute Resolution
Include a detailed dispute resolution process. In 2025, many agreements recommend starting with mediation or arbitration before resorting to legal proceedings. Not only does this save both parties time and expense, but it also demonstrates a commitment to amicable and efficient resolution procedures. For further advice on dispute resolution, check out our contract drafting guides.
9. Termination
Outline the terms under which either party can terminate the contract, including any notice periods required and obligations upon termination. For example, if you are renting out machinery, state that it must be returned promptly upon contract termination, and that any remaining rental fees remain payable. Clear termination clauses help manage expectations and reduce post-contract complications.
10. Force Majeure
Given the unfolding challenges in recent years-from pandemics to extreme weather events and digital disruptions-the Force Majeure clause must be explicit. Define precisely what constitutes force majeure and explain how such events affect contractual obligations. This protects both parties by outlining a fair process if unforeseen circumstances render performance impossible.
Additionally, it is advisable to review and update your Service Agreement regularly to ensure it reflects the latest legal frameworks and market practices in 2025. With evolving digital business models and stricter data protection standards, staying current is key. For further insights on modernising your business contracts, take a look at our Business Structure Guide and Online Business Privacy resources.
What Next?
Ensure that your Service Agreement complies with the latest consumer laws and is written in clear, straightforward language that your customers can easily understand. In 2025, with updated digital compliance and enhanced consumer protection measures, simplicity and transparency in your agreements have never been more important.
At Sprintlaw, we specialise in drafting tailored Service Agreements that align with your unique business needs. With decades of expertise and a commitment to keeping our clients updated on the latest legal requirements, our team is here to help you navigate everything from digital transactions to securing your intellectual property. If you’re ready to update your Service Agreement or simply need expert legal advice, please call us on 08081347754 or email [email protected] for a free, no-obligation consultation. You can also explore our comprehensive guides on contract drafting and business set-up for even more detailed advice.
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