Terms of Service – A Breakdown

Terms of Service – A Breakdown

terms of serviceWhen you decide to outsource work to a freelancer or company, be sure to consult with a commercial lawyer and get advice in relation to terms of service.  You can discuss with your lawyer what flexibility you would like to offer your supplier.  Some terms of service can be very divisive if you haven’t discussed them with your supplier or service provider.  It is important that you have that discussion with your supplier.

Once you have a plan, you can speak to a commercial lawyer.  A lawyer will help you see things clearer, such as payment terms and termination of services.  You will also get help with looking ahead and thus avoid any pitfalls.  If you’ve got a plan but are not clear on what to do, get a commercial lawyer to help you.  Strategic planning is key to a good business relationship.  We often overlook important aspects of an agreement that will inevitably create conflicts.  However, if you consult with a legal expert who is also business savvy, you are on the right track.

Terms of Service and Their Interpretation

This is a list which shows what will potentially be included in the agreement – the interpretation of the terms of service:

  • The agreement is between supplier and customer
  • Who’s the customer (person or company who purchases services)
  • Who’s the supplier – (person or company who supplies services)
  • Commencement date
  • Conditions of the agreement
  • What is the customer data and how it should be governed or protected
  • Intellectual property rights
  • Services detailed
  • Information relating to fees and payment terms

Supplier and Customer

You need to stipulate names of both supplier and customer for legal purposes.  Who really are the supplier and customer?  For instance, if the supplier is a company, whose name will be used in the agreement?  The name of the company director or the company name?  Remember that both supplier and customer are accountable, so you need to be precise with names.

Start Date

Have a start date – the commencement of services rendered by the supplier.  If you agree that services should begin on a certain date, the supplier should carry out services beginning on that date.  You will then have an obligation to pay for services which began on the agreed date.  The date stipulated in the terms of service is the date your supplier should honour.

Conditions of Agreement

The conditions of the agreement between you and your supplier may vary greatly.  Conditions need to be disclosed and explained – clarity is essential in relation to what the services are and how they should be supplied.  You must explain in detail what you require from the supplier so that it is clear to both you and the supplier.

Data and Intellectual Property

The supplier will likely have access to data, including sensitive data and intellectual property.  Terms of service must include any accessibility to data and any expectations in terms of management and protection.  You need a confidentiality agreement clause in your terms of service and your supplier needs to be very clear about what can and cannot be disclosed.  Also, be sure to make it clear what is your intellectual property and how it should be handled by the supplier.

Supplier’s Fees, Expenses and Payment Terms

The terms of service should state how much the supplier’s fees will be for remuneration of services.  Clearly state in the agreement how the supplier will be remunerated.  Does the supplier charge per hour?  What is the hourly rate and does it include VAT?  There’s also the matter of expenses which you need to understand and decide if you agree to pay and which expenses you will agree to pay.

You should discuss expenses with the supplier.  Expenses will arise during the course of work so you need to agree with the supplier which expenses will be refunded.  If the supplier incurs costs outside their normal daily expenses in order to meet your requirements, you need to decide if you’ll be willing to pay.  Transport or telephone costs may arise and you need to agree if and on which circumstances you will refund the supplier. The terms of service will also give you and the supplier guidance in relation to payment terms – when the customer will be invoiced and when payment is due, as well as what to expect if payment is overdue.

If you are considering to outsource work to a freelancer or company, please give us a call for an informal discussion.  We’ll help you and your supplier get on the right track. SG

Make An Enquiry

Call us now on 020 7113 4003 or complete our Online Enquiry and we will be delighted to talk with you about your legal matter.

Free Enquiry

Back to all news

Share Article With:

Make An Enquiry

Client Reviews

Venetia Lawson-Cruttenden [solicitor] is fantastic!  She is always so thorough and efficient and gives you the

DG Law supported us through a very difficult contractual negotiation to achieve exactly the outcome

We were very pleased with the way that DG Law helped us on our transaction

Thanks for all the help from DG Law in pulling together our somewhat complicated loan. 

DG Law resolved a difficult lease renewal for us and their services were excellent –

I needed understanding and experienced legal advice. DG Law provided an excellent service at a

My experience was second to none – the service was professional and personal. DG Law

DG Law always step up to the plate on our transactions and handle the various

DG Law was recommended to me and my partner and I received excellent advice –

Having worked with DG Law a number/couple of times now, I have been really impressed

DG Law were constantly at hand, and kept pro-active throughout the thorny process of getting

DG Law organised and ran a very useful session to help to make our team’s

DG Law came recommended to me and whilst setting up a new business it was

We were recommended three lawyers to handle the sale of our seven year old successful

Why Choose Us?

We live by our core values of transparency, flexibility and being honourable – every day

We put ourselves in your shoes so we understand your problems from the inside out

We deliver our advice in a way that is easy to understand