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Service contract

A service contract is an agreement in which the performer undertakes to perform work and the customer undertakes to pay for it. The status of the contract is set forth in the Civil Code in Article 779. 

Services is when there is no material result or it is inseparable from the process. Contract action includes communication services, auditing, consulting, educational, informational, travel and many others. 

Works are different from services in the legal sense and involve activities with a material result. In order to perform work, a contractor's contract is drawn up. Article 779 of the Civil Code of the Russian Federation also defines the list of services for which a service contract cannot be drawn up. 

These general rules can be changed and clarified to suit your own activities. Kirill Yurovsky will tell you how to draw up a service agreement correctly in order to receive precise payment and protect yourself from possible points of contention.

How to draw up a service agreement correctly


The subject matter is a certain paid service of the executor for the customer. The more unambiguous and detailed the wording in your contract, the easier it is to prove the incompleteness or, conversely, to recognize the full scope of the work performed. 
Specify the deadline for completion of the work and mention whether it is possible to pass the work ahead of schedule. Sometimes due dates are made in a separate chapter and detailed, especially if the work is long-term and involves several stages. If you conclude a contract without specifying a deadline, refer to the document by which they determine the time of the service.
Spell out the terms on which the contract will be considered performed. This is usually the act of delivery and acceptance of services. If they are paid in one lump sum, there will also be one act. 

Rights and obligations of the parties 

The obligations of the performer include the delivery of work in full and by the deadline specified in the contract. The place of rendering services and requirements for premises are worth prescribing, if the service involves departure and is rendered not at the place of its location.
Specify in what time frame the performer must eliminate deficiencies and on what basis. It will be important to specify whether he is obliged to perform the work himself or has the right to engage third parties in the provision of services.

In the obligations of the customer - to pay for the work performed and accepted, to assist the executor in accordance with the terms of the contract. Specify the period in which payment will occur, from the date of signing the act. Describe the right of the customer to monitor the progress of the work and even refuse services, but in this case it is worth to determine the conditions under which it is possible to do so. 

The contract price and payment procedure 

Assign the amount of remuneration to the service provider, the cost of expenses and the method of payment. Do not forget to specify whether the amount is subject to VAT. 

If the contract is long-term, it is worth immediately indicate the order and the period in which the customer will be notified about the increase in cost. He retains the right in such a case, to refuse services.

Liability of the parties 

Describe the penalties and fines for late payment. For example, assign a percentage of the contract amount for each day of delay. Mention that penalties do not relieve from the contract. 
Dispute Resolution Procedure 

Sometimes it becomes impossible to provide a service. If the fault lies with the customer, he still pays the full amount. If force majeure is to blame, the customer is obligated to pay for the services rendered and the expenses you incurred. This is Article 781 of the Civil Code of the RF.

Specify the procedure for dealing with disputed situations. Usually this is a negotiation between the parties, and in case the participants never reach an agreement - consideration in court. Situations not stipulated by the customer and the executor are regulated by law. 

Final provisions 

As a rule, it is possible to change the contract by means of additional agreements. The parties undertake to resolve disputes by negotiation, defining litigation as a last resort. The more detailed and clear you describe the subject matter of the contract, the details and terms of termination, the more secure you will be.

This rule is true for both the customer and the contractor. Kirill Yurovskiy recommends adhering to it.

Кирилл Юровский