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Supply of services agreement Template for Pakistan

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Key Requirements PROMPT example:

Supply of services agreement

I need a supply of services agreement for a freelance consultant providing IT support services on a project basis, with a clear scope of work, payment terms based on milestones, confidentiality clauses, and a termination clause with a 30-day notice period.

What is a Supply of services agreement?

A Supply of services agreement sets out the terms when one business provides professional services to another in Pakistan. It covers essential details like the scope of work, payment terms, service quality standards, and timelines - making it different from contracts for goods or products.

These agreements protect both parties under Pakistani contract law by clearly spelling out each side's rights and obligations. Common in IT, consulting, and professional services sectors, they typically include key provisions about confidentiality, intellectual property rights, dispute resolution methods, and liability limits that align with local commercial regulations.

When should you use a Supply of services agreement?

Use a Supply of services agreement when engaging external professionals or firms to provide ongoing services to your Pakistani business. This applies when hiring IT consultants, marketing agencies, business advisors, facilities management companies, or any service provider where the scope, deliverables, and terms need clear documentation.

The agreement becomes especially important for services lasting more than three months, involving sensitive information, or exceeding PKR 500,000 in value. Pakistani law requires written contracts for such business relationships, and having detailed terms helps prevent disputes about service quality, payment schedules, and intellectual property ownership.

What are the different types of Supply of services agreement?

  • Basic Service Agreements: Cover straightforward service arrangements with standard payment terms and basic obligations
  • Professional Services Agreements: Used for specialized services like consulting or IT, with detailed scope and deliverables
  • Ongoing Service Contracts: Include specific performance metrics, regular reporting requirements, and renewal terms
  • Project-Based Agreements: Focus on milestone-based deliverables with fixed timelines and completion criteria
  • Managed Service Agreements: Cover comprehensive service packages with detailed SLAs, support levels, and escalation procedures

Who should typically use a Supply of services agreement?

  • Service Providers: Companies or professionals who deliver specialized services, from IT consultants to marketing agencies, use these agreements to define their offerings and protect their interests
  • Client Organizations: Pakistani businesses that need external expertise or services rely on these agreements to ensure clear deliverables and quality standards
  • Legal Counsel: In-house or external lawyers who draft, review, and negotiate terms to protect their clients' interests under Pakistani contract law
  • Project Managers: Oversee the agreement's implementation, monitor service delivery, and manage relationship between parties
  • Finance Teams: Handle payment schedules, verify deliverables, and ensure compliance with financial terms

How do you write a Supply of services agreement?

  • Service Details: Document exact scope, deliverables, timelines, and quality standards expected from the service provider
  • Party Information: Gather complete business details, registration numbers, and authorized representatives of both parties
  • Payment Terms: Define payment amounts, schedules, invoicing procedures, and any performance-linked payments
  • Performance Metrics: Establish clear KPIs, reporting requirements, and service level expectations
  • Compliance Check: Review Pakistani contract laws, tax implications, and industry-specific regulations affecting the service
  • Risk Management: Outline liability limits, confidentiality requirements, and dispute resolution procedures

What should be included in a Supply of services agreement?

  • Party Details: Full legal names, addresses, registration numbers, and authorized signatories of service provider and client
  • Service Description: Detailed scope of services, deliverables, timelines, and quality standards
  • Payment Terms: Fee structure, payment schedule, invoicing process, and tax considerations
  • Duration & Termination: Contract period, renewal terms, and conditions for early termination
  • Confidentiality: Protection of sensitive information and intellectual property rights
  • Dispute Resolution: Governing law, jurisdiction, and arbitration procedures under Pakistani law
  • Force Majeure: Provisions for unforeseen circumstances affecting service delivery

What's the difference between a Supply of services agreement and a Supply of goods agreement?

A Supply of services agreement differs significantly from a Supply of goods agreement in several key aspects under Pakistani law. While both involve commercial transactions, their core focus and legal requirements vary considerably.

  • Nature of Exchange: Services agreements cover ongoing professional work, expertise, or labor delivery, while goods agreements focus on physical product transfers and ownership
  • Performance Metrics: Service agreements emphasize quality standards, expertise levels, and delivery timelines; goods agreements focus on product specifications, quantities, and delivery dates
  • Legal Framework: Services fall under contract law with emphasis on professional obligations, while goods agreements align with sale of goods regulations
  • Payment Structure: Services often involve milestone-based or recurring payments, whereas goods typically require fixed-price or per-unit pricing
  • Warranty Terms: Service warranties cover performance quality and outcomes; goods warranties address product defects and merchantability

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