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Service Provision Agreement Template for Pakistan

A comprehensive legal agreement governed by Pakistani law that establishes the terms and conditions under which one party (the Service Provider) agrees to provide specified services to another party (the Client). This document incorporates requirements from the Pakistan Contract Act 1872 and relevant service-specific legislation, detailing service scope, payment terms, performance standards, and obligations of both parties. It includes provisions for dispute resolution under Pakistani jurisdiction and addresses specific local legal requirements such as stamp duty and registration requirements where applicable.

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What is a Service Provision Agreement?

The Service Provision Agreement is a fundamental commercial document used in Pakistan to formalize service-based business relationships. This agreement type is essential when one party wishes to engage another for professional, technical, or operational services while ensuring clear terms and legal protection under Pakistani law. The document should be used whenever there is a need to establish a formal service relationship, whether for short-term projects or ongoing services. It typically includes detailed specifications of services, payment structures, performance metrics, and compliance requirements with local regulations. The agreement must comply with the Pakistan Contract Act 1872 and other relevant legislation, making it particularly important to include jurisdiction-specific elements such as proper stamping and registration where required. A well-drafted Service Provision Agreement helps prevent disputes by clearly defining expectations, responsibilities, and remedies while ensuring enforceability under Pakistani law.

What sections should be included in a Service Provision Agreement?

1. Parties: Identification and details of the service provider and service recipient, including registration numbers and addresses

2. Background: Context of the agreement and brief description of the parties' business relationship

3. Definitions: Definitions of key terms used throughout the agreement

4. Scope of Services: Detailed description of services to be provided, including deliverables and performance standards

5. Term and Commencement: Duration of the agreement and conditions for commencement

6. Payment Terms: Fees, payment schedule, invoicing requirements, and payment methods

7. Obligations of Service Provider: Key responsibilities and commitments of the service provider

8. Obligations of Client: Key responsibilities and commitments of the client

9. Representations and Warranties: Statements of fact and promises made by both parties

10. Confidentiality: Provisions for protecting confidential information

11. Intellectual Property: Ownership and usage rights of IP created or used during service provision

12. Termination: Circumstances and procedures for ending the agreement

13. Indemnification: Protection against third-party claims and losses

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and governing law

15. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

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

1. Service Levels: Detailed performance metrics and standards, used when specific service levels need to be maintained

2. Data Protection: Provisions for handling personal data, required when personal data processing is involved

3. Force Majeure: Provisions for unforeseen circumstances, particularly important in long-term or high-risk services

4. Insurance: Insurance requirements, important for high-risk services or when required by industry standards

5. Non-Competition: Restrictions on competitive activities, useful when sharing sensitive business information

6. Change Control: Procedures for making changes to services or terms, important for complex or long-term agreements

7. Compliance with Laws: Specific regulatory compliance requirements, needed for regulated industries

8. Staff and Subcontractors: Rules regarding personnel and subcontracting, important when service delivery involves multiple parties

What schedules should be included in a Service Provision Agreement?

1. Schedule 1 - Service Specifications: Detailed technical specifications of the services to be provided

2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and payment terms

3. Schedule 3 - Service Levels: Specific performance metrics, KPIs, and measurement methods

4. Schedule 4 - Contact Details: Key contacts and escalation matrix for both parties

5. Schedule 5 - Required Documentation: List of documents required for service delivery and compliance

6. Appendix A - Form of Reports: Templates for required reports and documentation

7. Appendix B - Change Request Form: Standard form for requesting and documenting changes to services

Authors

Alex Denne

Head of Growth (Open Source Law) @ tiktok成人版 | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

Pakistan

Document Type

Service Contract

Cost

Free to use

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