The Business Service Agreement is a fundamental commercial document used in New Zealand business operations when one entity agrees to provide professional or technical services to another. This agreement is essential for establishing clear parameters around service delivery, performance expectations, and risk allocation between businesses. It is particularly relevant in today's complex business environment where companies increasingly rely on external service providers for specialized functions. The document must comply with New Zealand legal requirements, including the Contract and Commercial Law Act 2017, and typically includes provisions for service levels, payment terms, intellectual property rights, confidentiality, and dispute resolution. It's designed to protect both service providers and clients while providing a clear framework for their business relationship.
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1. Parties: Identifies and provides full legal details of all parties to the agreement
2. Background: Sets out the context and purpose of the agreement, including brief description of the business relationship
3. Definitions: Defines key terms used throughout the agreement
4. Services: Detailed description of the services to be provided, including scope and delivery requirements
5. Term and Termination: Duration of the agreement and circumstances under which it can be terminated
6. Payment Terms: Fees, payment schedule, invoicing process, and payment methods
7. Service Standards: Quality standards, performance metrics, and service levels to be maintained
8. Obligations of the Parties: Key responsibilities and obligations of both service provider and client
9. Confidentiality: Protection of confidential information and trade secrets
10. Intellectual Property: Ownership and usage rights of IP created or used during service provision
11. Liability and Indemnification: Limitation of liability and indemnification obligations
12. Insurance: Required insurance coverage and minimum limits
13. Dispute Resolution: Process for resolving disputes between parties
14. General Provisions: Standard legal provisions including governing law, notices, and assignment
1. Data Protection: Detailed provisions for handling personal data, required if services involve processing personal information
2. Change Management: Process for requesting and implementing changes to services, useful for long-term or complex service arrangements
3. Force Majeure: Provisions for unforeseen circumstances, particularly relevant in critical service agreements
4. Non-Solicitation: Restrictions on hiring each other's employees, important in professional services
5. Transition Services: Procedures for transitioning services at termination, crucial for complex or critical business services
6. Compliance: Specific regulatory compliance requirements, necessary for regulated industries
7. Subcontracting: Terms governing the use of subcontractors, important when subcontracting is anticipated
8. Business Continuity: Disaster recovery and business continuity requirements, crucial for essential services
9. Audit Rights: Rights to audit service provider's operations, important for regulated industries or critical services
1. Schedule 1 - Service Description: Detailed specifications of services, deliverables, and technical requirements
2. Schedule 2 - Service Levels: Specific performance metrics, KPIs, and service level requirements
3. Schedule 3 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms
4. Schedule 4 - Key Personnel: List of key staff members and their roles in service delivery
5. Schedule 5 - Implementation Plan: Timeline and milestones for service implementation
6. Appendix A - Security Requirements: Specific security protocols and requirements
7. Appendix B - Data Processing Requirements: Detailed data handling and privacy requirements
8. Appendix C - Contact Details: Key contacts and escalation procedures for both parties
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Professional Services
Management Consulting
Financial Services
Business Process Outsourcing
Engineering Services
Marketing and Advertising
Facilities Management
Healthcare Services
Educational Services
Construction Services
Environmental Services
Telecommunications
Legal Services
Human Resources Services
Relevant Teams
Legal
Operations
Procurement
Commercial
Finance
Risk and Compliance
Business Development
Account Management
Project Management
Service Delivery
Executive Leadership
Contract Administration
Relevant Roles
Legal Counsel
Contract Manager
Commercial Director
Chief Operating Officer
Procurement Manager
Business Development Manager
Operations Manager
Project Manager
Account Executive
Risk Manager
Compliance Officer
Service Delivery Manager
Chief Financial Officer
General Manager
Managing Director
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