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Business Service Agreement for the United Kingdom

Business Service Agreement Template for England and Wales

A Business Service Agreement is a legally binding contract governed by the laws of England and Wales that establishes the terms and conditions under which one party provides specific business services to another. It details the scope of services, payment terms, performance standards, liability limitations, and obligations of both parties. The agreement includes provisions for confidentiality, intellectual property rights, data protection, and dispute resolution mechanisms compliant with English law.

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What is a Business Service Agreement?

The Business Service Agreement is essential for organizations engaging in service-based commercial relationships in England and Wales. This document establishes clear expectations, responsibilities, and legal protections for both service providers and clients. It covers crucial aspects such as service scope, deliverables, payment terms, and performance standards, while ensuring compliance with UK legislation including data protection, employment, and consumer protection laws. The agreement is particularly valuable for ongoing business relationships where services are provided on a regular or project basis.

What sections should be included in a Business Service Agreement?

1. Parties: Identifies and defines the contracting parties with full legal names and addresses

2. Background/Recitals: Sets out the context and purpose of the agreement

3. Definitions: Defines key terms used throughout the agreement

4. Services: Detailed description of services to be provided

5. Payment Terms: Fees, payment schedule, invoicing, and late payment provisions

6. Term and Termination: Duration of agreement and termination conditions

7. Obligations and Responsibilities: Key obligations of both parties

8. Confidentiality: Protection of confidential information

9. Liability and Indemnification: Limitation of liability and indemnification provisions

10. Governing Law: Specifies applicable law and jurisdiction

What sections are optional to include in a Business Service Agreement?

1. Data Protection: Required when personal data is processed as part of the services

2. Intellectual Property: IP ownership and licensing provisions for any created or used intellectual property

3. Service Levels: Specific performance metrics and standards for measuring service delivery

4. Change Control: Process for managing changes to services or agreement terms

5. Force Majeure: Provisions for handling unforeseeable circumstances affecting service delivery

What schedules should be included in a Business Service Agreement?

1. Service Description Schedule: Detailed specification of services to be provided

2. Pricing Schedule: Detailed pricing structure and rates

3. Service Level Agreement: Detailed performance metrics and remedies

4. Data Processing Agreement: Detailed data protection obligations and procedures

5. Change Control Procedure: Detailed process for implementing changes

6. Key Personnel: List of key staff and their roles

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

England and Wales

Publisher

Ƶ

Document Type

Service Agreement

Cost

Free to use
Relevant legal definitions




















Clauses






























Industries

Contracts (Rights of Third Parties) Act 1999: Governs how third parties may enforce terms of a contract to which they are not a direct party

Supply of Goods and Services Act 1982: Sets out implied terms in contracts for the supply of services, including requirements for reasonable care and skill

Consumer Rights Act 2015: Key legislation for B2C relationships, setting out consumer rights and business obligations in service provision

Unfair Contract Terms Act 1977: Regulates contracts by restricting how far civil liability for breach of contract can be avoided using contract terms

Late Payment of Commercial Debts (Interest) Act 1998: Provides for payment of statutory interest on late payments in commercial transactions

UK General Data Protection Regulation (UK GDPR): Primary data protection legislation governing how personal data must be handled and processed in the UK

Data Protection Act 2018: The UK's implementation of data protection law, working alongside UK GDPR

Privacy and Electronic Communications Regulations (PECR): Specific rules for electronic communications, marketing, and use of cookies

Employment Rights Act 1996: Principal legislation governing employment rights, relevant if services involve staff transfers

Transfer of Undertakings (Protection of Employment) Regulations 2006: Protects employees' rights when business ownership or service provision changes hands (TUPE)

Equality Act 2010: Prohibits discrimination and promotes equality in service provision and employment

Copyright, Designs and Patents Act 1988: Protects intellectual property rights in creative works, designs, and inventions

Trade Marks Act 1994: Governs the registration and protection of trademarks in the UK

Bribery Act 2010: Sets out anti-bribery and corruption requirements for businesses

Modern Slavery Act 2015: Requires businesses to ensure their operations and supply chains are free from slavery and human trafficking

Companies Act 2006: Primary legislation governing company operations and corporate governance in the UK

Competition Act 1998: Prohibits anti-competitive behavior and regulates fair market practices

Common Law - Doctrine of Consideration: Legal principle requiring that something of value must be exchanged for a contract to be binding

Common Law - Offer and Acceptance: Fundamental principles determining how and when a contract is formed through offer and acceptance

Common Law - Intention to Create Legal Relations: Principle requiring parties to intend their agreement to be legally binding

Common Law - Misrepresentation: Legal principles governing false statements that induce contract formation

Common Law - Breach of Contract Remedies: Legal principles determining available remedies when a contract is breached

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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