Standard Service Contract Template for Newly Established Enterprises

A standard service contract template for newly established enterprises is an agreement between the service provider and the service user. This template includes key clauses: definitions, basic content, and considerations when signing. Drafting a standard contract helps minimize risks during the contract execution. Long Phan provides a standard service contract template and drafting guidelines in the article below.

Standard Service Contract for Newly Established Enterprises

What is a Service Contract?

A service contract is an agreement between parties regarding the provision and use of services. According to Article 513 of the Civil Code 2015, the service provider performs work for the service user. The service user must pay for the services. This contract establishes the rights and obligations of the parties during the performance of the work.

The service contract is a type of civil contract, with the subject being specific work. The service provider is responsible for completing the work for the benefit of the service user. In return, the service user must pay the fees as agreed in the contract or according to legal regulations.

The services provided must comply with the law and not violate the law or social ethics. The service contract helps the parties clearly define the scope of work, quality standards, completion deadlines, and payment terms. Signing a service contract helps protect the rights of both parties and avoid disputes that may arise during the execution.

Provisions on Service Contracts

Subjects

The subjects of a service contract include the service provider and the service user. The service provider can be an individual or organization capable of performing the required work. The service user is an individual or organization that needs the services and can pay the costs.

For individuals participating in a service contract, they must have full civil capacity as prescribed in Article 20 of the Civil Code 2015. Persons 18 years old and above have full civil capacity, except in cases where civil capacity is restricted. For minors, contract signing must comply with regulations on civil transactions involving minors.

For organizations participating in a service contract, they must have legal status and sign the contract through their legal representative. The legal representative must have full civil capacity and authority to represent the organization as stipulated in Clause 1, Article 74 of the Civil Code 2015. Additionally, this person must comply with the organization’s charter.

Form

The form of a service contract is specifically stipulated in Article 74 of the Commercial Law 2005. Accordingly, the contract can be concluded in three forms:

• Verbal;
• Written;
• Specific acts.

However, for service contracts that the law requires to be in writing, these regulations must be followed.

Content

The content of the contract is a summary of what the parties agree on. Therefore, the law recognizes the basic content to determine the responsibilities of each party during the contract execution. Specifically, the basic content of the contract includes:

• Information about the parties: service provider and customer;
• Provided services;
• Performance period;
• Service price;
• Time, place, and method of contract performance;
• Form and time of payment;
• Rights and obligations of the parties;
• Liability for contract breaches;
• Dispute resolution methods;

Additionally, the contract may include other terms depending on the agreement and needs of the parties.

Reasonable service standard model

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Service contract template for businesses

Service Contract: Important Considerations for Parties Involved

A service contract is an agreement between the participating parties. Therefore, when signing, individuals and businesses need to consider the following points:

Rights of the Service User:

• Request the service provider to perform the work ensuring quality, quantity, deadlines, location, and other agreed-upon terms.
• Unilaterally terminate the contract and claim compensation for damages if the service provider breaches the contract.

Obligations of the Service User:

• Provide all necessary information, documents, and means required to facilitate the work.
• Pay the fees as agreed upon in the contract.

If the fixed-term contract expires but the work is not completed and the service provider is aware but does not object, the service contract will continue under the agreed terms until the work is completed.

If the parties conclude an agreement verbally and perform the work quickly without drafting a written contract, the service provider must reach a consensus with the service user, especially on payment terms, to avoid future risks. This is because verbal agreements have low legal enforceability.

Notes on Verbal Agreements

Consultation Services for Drafting Standard Service Contracts for Businesses

At Long Phan, we offer our clients support services for drafting standard service contracts, including:

• Assisting in drafting service contracts.
• Reviewing and appraising the content of contracts.
• Advising on contract terms to ensure the legal rights and interests of the parties.
• Collaborating with businesses to negotiate contracts with partners.
• Advising on solutions in case of contract disputes.

Drafting a good service contract not only specifies the rights and obligations of both parties but also ensures legal compliance. To ensure the legal validity of the contract and protect the rights of the parties, a standard contract template is necessary. If the contract terms are superficial and do not anticipate risks, disputes may arise later.

Service contracts play a crucial role in business activities. Using a standard contract template helps newly established businesses protect their rights and minimize legal risks. Long Phan provides professional consulting and drafting services for service contracts, ensuring legal compliance and meeting the specific needs of businesses. If you need assistance, please contact Long Phan at 0906.735.386 for consultation and to receive a standard service contract template.