Service Contract
Definition of "Service contract"
The term service contract is a written document covering a legally binding agreement signed by two or more parties involved. One of the parties is the hiring person or client, contracting another party for providing a specific service in return for a well-defined payment. Service agreements often referred to as service contracts, differ from contracts signed for goods.
What does a service contract imply?
A contract must include the terms of service to safeguard each involved parties’ interests legally. Subsequently, the customer receives the service they requested in a satisfactory quality. At the same time, the service contract ensures that clients reimburse contractors for their work.
Service contract in everyday use
A service agreement can refer to a deal bought by a homeowner for servicing household items. This contract may be taken out with the contractor or third party. Examples are service contracts on household appliances. A service contract provides the owner with the assurance that the contractor will repair their faulty item at a set fee if problems arise. However, a service contract is usually more costly than paying for repairs as incurred.
Service contract in real estate
Additionally, we can find service contracts in the real estate business too. It’s essential to sign a service agreement before hiring a real estate agent or a broker. Clients, both homebuyers and sellers, employ local real estate agents to represent their best interests in a property purchase or sale. Once signed the agreement, the licensed brokerage will comply with its obligations to the client.
How to write a service contract?
Compiling a service contract begins with the general information of all parties involved. The primary object of the agreement must be revealed, namely the nature of the service. Then, one must include all parties’ considerations or quid pro quo. It should include information on the service or the length of coverage. No contract can be too exhaustive regarding the service aspects and reimbursement coverage. Also, include exclusions to coverage. Introduce paragraphs addressing the duties of all parties involved! By the end of the service, each party will file their claims. A service contract determines the proper way to handle demands for service delivery or payment due as every party’s right.
Popular Real Estate Terms
In order to define allotment, we have to take into consideration what it refers to. While generally, it refers to a certain amount of something that is allocated to a particular person, the ...
Derogative term describing a high-pressure telemarketing office where sales personnel often use extremely exaggerated claims as well as intense sales practices to convince targets clients ...
The total return from holding a real estate investment for the holding period of time. The computation follows: For a mutual fund investing in a real estate, the return is in the form ...
Authority given by a municipality to perform specified operations in a certain zoning area. Conditions are sometimes attached by the zoning group. An example is permission to have a ...
Agequake is not the era of earthquakes! It’s a term that was coined by author Paul Wallace in his 1999 book “Agequake: Ridding the demographic rollercoaster shaking business, ...
The capital expenditure definition is an evaluation method of investments that a company of any kind, including real estate developments, makes to maintain or upgrade tangible assets. These ...
report containing financial information about a business or individual. The required financial statements for a real estate company are balance sheet, income statement, and statement of ...
A married partner. Property may be jointly held by spouses. ...
Let’s explore the definition of attribution in practice! Attribution is when you give an individual credit and the right to perform a specific action or the quality of one particular ...
Have a question or comment?
We're here to help.