Documents / Business

Service Agreement

A general-purpose agreement for providing services to a business or consumer — scope, fees, timeline, warranties, and liability.

Time

⁨~8 min⁩

Questions

⁨17⁩

Steps

⁨4⁩

Export

⁨PDF · Word⁩

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What we will cover

  1. 01

    Provider & Client

  2. 02

    The Services

  3. 03

    Fees & Payment

  4. 04

    Legal Terms

  5. 05

    Review and generate

    AI review, edits, export, and e-signature.

About this document

A service agreement sets out what one party will do for another and what they get paid for it — scope, fees, timeline, revisions, warranties, and who carries the risk when something goes wrong. It works for consulting, marketing, bookkeeping, trades, and most other paid work that isn't the sale of a physical product. Almost every service dispute traces back to scope: what the client thought was included and the provider thought was extra.

The description of services is the operative clause, not boilerplate. Write it narrowly and add a change-order process, so extra work becomes a priced amendment rather than an argument. Two other terms carry real weight: the payment schedule (deposits and milestones beat one invoice at the end) and the limitation of liability, which is usually capped at fees paid. Some trades — construction, home improvement, and other licensed work — must also follow state-specific contract rules.

Common questions

What is the difference between a service agreement and a statement of work?+

The service agreement holds the legal terms — payment, confidentiality, IP, liability, termination — and is meant to last across multiple projects. A statement of work (SOW) describes one specific engagement: deliverables, dates, and price. Many businesses sign the agreement once and attach a new SOW for each project. Quill's service agreement can be used either way, with the scope written inline or by reference to an attached SOW.

What happens if the client cancels partway through?+

That depends entirely on your termination clause. A common approach is termination for convenience on written notice, with the client owing for all work performed and expenses incurred through the termination date, plus any non-refundable deposit. Without that language, you may be arguing about the value of unfinished work, which is exactly the fight you wrote the contract to avoid.

Should a service agreement limit liability?+

Yes, in most cases. A liability cap — commonly set at the total fees paid under the agreement — plus a waiver of indirect and consequential damages keeps a modest project from generating an outsized claim. Courts generally enforce these clauses between businesses, though they will not shield fraud or intentional misconduct, and some states limit them for consumer contracts.

General information, not legal advice — laws vary by state and change over time.