Service Partner Agreement

Service Partner Agreement for the United Kingdom

Service Partner Agreement Template for England and Wales

A Service Partner Agreement is a comprehensive legal document governed by the laws of England and Wales that establishes a formal relationship between a service provider and a principal company. It outlines the terms and conditions under which services will be delivered, including scope, payment terms, performance standards, and obligations of both parties. The agreement includes provisions for confidentiality, intellectual property rights, liability limitations, and dispute resolution mechanisms, all structured within the framework of English law.

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What is a Service Partner Agreement?

The Service Partner Agreement is essential for businesses seeking to formalize service delivery relationships under English and Welsh law. It is commonly used when companies want to establish long-term service partnerships with external providers while maintaining clear operational boundaries and performance expectations. This document addresses key aspects such as service scope, quality standards, payment terms, and risk allocation, while ensuring compliance with relevant UK legislation including data protection, employment, and competition laws.

What sections should be included in a Service Partner Agreement?

1. Parties: Identification and details of the contracting parties including registered addresses and company numbers

2. Background: Context of the agreement and high-level description of the commercial relationship

3. Definitions: Defined terms used throughout the agreement for clarity and consistency

4. Services: Detailed description of services to be provided by the Service Partner

5. Service Standards: Quality standards and requirements for service delivery

6. Charges and Payment: Financial terms, payment schedule, invoicing requirements and payment mechanisms

7. Term and Termination: Duration of the agreement and circumstances under which it can be terminated

8. Intellectual Property Rights: Ownership and licensing of IP created or used during service delivery

9. Confidentiality: Protection and handling of confidential information

10. Data Protection: Compliance with UK GDPR and Data Protection Act 2018

11. Liability and Insurance: Limitations of liability and required insurance coverage

12. General: Standard boilerplate provisions including governing law and jurisdiction

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

1. Service Levels: Specific performance metrics and KPIs (when quantifiable service standards are required)

2. Change Control: Process for managing changes to services or agreement terms (for complex service arrangements)

3. TUPE: Transfer of employees provisions (when service provision may involve transfer of employees)

4. Anti-Bribery and Modern Slavery: Compliance with Anti-Bribery Act and Modern Slavery Act (for high-risk or international services)

5. Non-Compete: Restrictions on competitive activities (when protecting market position is crucial)

What schedules should be included in a Service Partner Agreement?

1. Schedule 1 - Services Description: Detailed technical specification of services to be provided

2. Schedule 2 - Charges: Detailed pricing structure, rate cards, and payment terms

3. Schedule 3 - Service Levels: Detailed performance metrics, KPIs, and measurement methodology

4. Schedule 4 - Data Processing Agreement: GDPR-compliant data processing terms and details

5. Schedule 5 - Personnel: Key personnel, qualifications, and security requirements

6. Schedule 6 - Change Control Procedure: Detailed process for managing changes to services or agreement

Authors

Alex Denne

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

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Free to use

Relevant legal definitions

Clauses

Relevant Industries

Technology
Professional Services
Facilities Management
Healthcare

Relevant Teams

Legal
Procurement
Operations
Finance
Compliance

Relevant Roles

Chief Operating Officer
Procurement Manager
Legal Counsel
Operations Director
Commercial Manager

Industries

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

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: Protects consumer rights and defines obligations for businesses providing services to consumers

Competition Act 1998: Ensures fair competition and prohibits anti-competitive agreements between businesses

Commercial Agents (Council Directive) Regulations 1993: Regulates the relationship between commercial agents and their principals

Employment Rights Act 1996: Defines basic employment rights and helps determine employment status

National Minimum Wage Act 1998: Ensures minimum payment requirements are met for workers

Working Time Regulations 1998: Governs maximum working hours, rest breaks, and holiday entitlements

IR35 Legislation: Tax legislation determining contractor vs. employee status for tax purposes

UK GDPR: Regulates the processing and handling of personal data in the UK post-Brexit

Data Protection Act 2018: Implements and supplements the UK GDPR, providing the UK's data protection framework

Trade Marks Act 1994: Governs the protection and use of trademarks

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

Bribery Act 2010: Criminalizes bribery and requires businesses to prevent bribery

Money Laundering Regulations 2017: Sets requirements for preventing and detecting money laundering

Health and Safety at Work Act 1974: Ensures workplace safety and sets out employer obligations

Equality Act 2010: Prohibits discrimination and promotes equality in business relationships

Common Law - Contract Formation: Legal principles governing offer, acceptance, consideration, and intention to create legal relations

Common Law - Breach and Remedies: Principles governing contract breaches and available remedies including damages and specific performance

Common Law - Limitation of Liability: Principles governing the extent to which liability can be limited or excluded in contracts

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Download a Standard Template

What is a Service Partner Agreement?

What sections should be included in a Service Partner Agreement?

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

What schedules should be included in a Service Partner Agreement?

Authors

Alex Denne

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