Contract for selling services to another business

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What's a contract for selling services to another business, and when do you need it?

This is a straightforward and basic ongoing agreement to supply of services to another business. It is not suitable for the supply of services to consumers and you should use our separate template covering this situation instead.

Our template will give you a great basis to agree more detailed regularly provided service provisions if you wish to do so.

For example, you might want to:

  • Include not just a description of the Services, at Annex 2, but a table setting out a full Scope Of Works document with a breakdown of individual costings and delivery dates

  • Reserve the right to appoint or sub-contract others in substitute to or in addition to yourself as the Supplier

  • Negotiate more detailed or complex ownership of intellectual property provisions

Our template contains lots of guidance to help you include all the right details, such as what price you're charging, whether you will provide quotations ahead of agreeing the work, how you will invoice for the work and the payment terms that apply, whether you will charge interest on late payment for the services and at what rate of interest, what are your obligations or warranties in terms of performance standards and timing, your level of liability if something goes wrong and any damage or injury is caused to others, who owns the IP rights in any services that you perform or materials that you provide as part of the service, what happens if the customer messes you about, etc...

This template is appropriate for a supply relationship that is negotiated and where you intend for both businesses to sign it. It may be a one-off transaction with a business customer, it could well be that you intend for this to be a regular supply arrangement; this template can cover both scenarios.