The Term Service Agreement is a fundamental commercial contract used in New Zealand business operations where one party agrees to provide ongoing services to another over a defined period. This document type is essential when establishing long-term service relationships that require detailed service levels, performance metrics, and clear operational parameters. It is particularly relevant for businesses seeking to formalize service arrangements while ensuring compliance with New Zealand legal requirements, including the Contract and Commercial Law Act 2017, Fair Trading Act, and Privacy Act. The agreement typically includes comprehensive provisions for service delivery, performance standards, payment terms, liability allocation, and termination rights, making it suitable for both straightforward and complex service arrangements across various industries.
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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 any relevant history or relationships
3. Definitions and Interpretation: Defines key terms used throughout the agreement and establishes interpretation rules
4. Term and Renewal: Specifies the initial term of the agreement and any renewal provisions
5. Services: Describes the core services to be provided, including scope and delivery requirements
6. Service Levels: Establishes the required standards and performance metrics for service delivery
7. Fees and Payment: Details the fee structure, payment terms, and invoicing procedures
8. GST and Taxes: Addresses GST requirements and tax responsibilities
9. Obligations of Service Provider: Lists the key responsibilities and commitments of the service provider
10. Obligations of Customer: Outlines the customer's responsibilities and requirements
11. Intellectual Property: Addresses ownership and usage rights of intellectual property
12. Confidentiality: Sets out obligations regarding confidential information
13. Privacy and Data Protection: Establishes requirements for handling personal information in compliance with the Privacy Act 2020
14. Liability and Indemnities: Defines liability limitations and indemnification obligations
15. Termination: Specifies termination rights, process, and consequences
16. General: Contains standard boilerplate provisions including notices, assignment, and governing law
1. Change Control: Include when services may need to evolve or change during the term
2. Business Continuity: Include for critical services requiring disaster recovery and business continuity planning
3. Security Requirements: Include when services involve IT systems or sensitive data
4. Audit Rights: Include when compliance verification or performance monitoring is required
5. Insurance: Include when specific insurance coverage requirements are needed
6. Personnel: Include when specific staff qualifications or vetting is required
7. Transition Services: Include when complex service handover is required at start or end of term
8. Force Majeure: Include when protection against unforeseen events is required
9. Anti-Bribery and Corruption: Include for high-value contracts or when dealing with public sector
10. Health and Safety: Include when services involve on-site work or physical risks
1. Schedule 1 - Service Description: Detailed description of services, including specifications and methodologies
2. Schedule 2 - Service Levels and KPIs: Detailed performance metrics, measurement methods, and reporting requirements
3. Schedule 3 - Fees and Charges: Detailed pricing structure, rates, and payment terms
4. Schedule 4 - Key Personnel: Details of key staff members and their roles
5. Schedule 5 - Implementation Plan: Timeline and milestones for service implementation
6. Schedule 6 - Technical Requirements: Technical specifications and requirements for service delivery
7. Schedule 7 - Security Standards: Detailed security requirements and compliance standards
8. Appendix A - Form of Change Request: Template for requesting and documenting service changes
9. Appendix B - Service Reports: Templates and requirements for service reporting
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