The Service Agreement Between Two Companies is a fundamental commercial document used in Nigerian business operations when one company wishes to engage another for the provision of specific services. This agreement type is essential in formalizing business relationships and ensuring clear understanding of deliverables, payment terms, and mutual obligations. It must comply with Nigerian law, including the Companies and Allied Matters Act (CAMA) 2020, and may need to address specific regulatory requirements depending on the service sector. The document is particularly important in Nigeria's growing service economy, where business-to-business services are increasingly common and require proper legal documentation to protect both parties' interests and ensure smooth business operations.
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1. Parties: Identification of the contracting companies, including registration details as required under Nigerian law
2. Background: Context of the agreement and brief description of both companies' business activities
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided, including deliverables and standards
5. Term: Duration of the agreement, including commencement date and any renewal provisions
6. Payment Terms: Fees, payment schedule, invoicing procedures, and currency specifications
7. Service Provider's Obligations: Key responsibilities and commitments of the service provider
8. Client's Obligations: Key responsibilities and commitments of the client
9. Representations and Warranties: Standard warranties about capacity to contract and service quality
10. Confidentiality: Protection of confidential information and trade secrets
11. Intellectual Property: Ownership and usage rights of pre-existing and created IP
12. Limitation of Liability: Caps on liability and exclusions
13. Force Majeure: Provisions for unforeseen circumstances preventing performance
14. Termination: Grounds for termination and consequences
15. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law
16. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. Service Levels: Include when specific performance metrics and standards need to be maintained
2. Data Protection: Include when services involve processing personal data or sensitive information
3. Compliance with Laws: Include when services are in regulated industries or involve specific regulatory requirements
4. Insurance: Include when services involve significant risks or physical presence
5. Staff and Subcontractors: Include when service provider will use subcontractors or deploy staff to client sites
6. Change Control: Include when scope of services may need to be modified during the term
7. Transition and Exit: Include when complex service handover is required at termination
8. Anti-Bribery and Corruption: Include for high-value contracts or when dealing with government-linked entities
9. Foreign Exchange Provisions: Include when payments involve foreign currency transactions
1. Schedule 1 - Service Description: Detailed specifications of services to be provided
2. Schedule 2 - Charges and Payment Terms: Detailed breakdown of fees, rates, and payment schedules
3. Schedule 3 - Service Levels: Performance metrics, measurement methods, and remedies for failure
4. Schedule 4 - Key Personnel: List of key staff members responsible for service delivery
5. Schedule 5 - Required Insurance: Details of insurance types and coverage levels
6. Appendix A - Form of Change Order: Template for documenting agreed changes to services
7. Appendix B - Security Requirements: Security protocols and requirements for service delivery
8. Appendix C - Exit Plan Template: Framework for service transition upon termination
Relevant legal definitions
Clauses
Relevant Industries
Information Technology
Consulting
Professional Services
Manufacturing
Oil and Gas
Financial Services
Telecommunications
Construction
Logistics
Facilities Management
Healthcare
Education
Real Estate
Marketing and Advertising
Environmental Services
Relevant Teams
Legal
Procurement
Operations
Finance
Commercial
Business Development
Project Management
Risk and Compliance
Contract Administration
Service Delivery
Relevant Roles
Chief Executive Officer
Managing Director
Legal Counsel
Contract Manager
Procurement Manager
Operations Director
Finance Director
Commercial Manager
Business Development Manager
Project Manager
Risk Manager
Compliance Officer
Company Secretary
Chief Financial Officer
Service Delivery Manager
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