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A Service Agreement, otherwise known as T&Cs, is a contract between your business and your customer, and in 2025 it remains a cornerstone of clear, enforceable commercial relationships.
It can take the form of a formal contract your customer needs to sign, an online tick box confirming acceptance, or even be embedded within your digital invoice – with secure e‑signatures now standard practice for many businesses.
Here at Sprintlaw, we’ve drafted hundreds of Service Agreements for businesses from all walks of life. Our experience has taught us that a well‑crafted Service Agreement not only mitigates risk but also streamlines operations in today’s fast‑paced digital environment. Whether you’re a start‑up, established enterprise, or transitioning to an online platform, this is what you need to know about Service Agreements and how they continue to fit into your business strategy in 2025.
Top Reasons Clients Want A Service Agreement
We’ve noticed that, even businesses well‑established in their field are approaching us for a Service Agreement now more than ever. In 2025 the main reasons include:
- A customer has refused to pay and there is no clear contract stipulating the consequences for non‑payment.
- A dispute arises over the scope of services, with the customer expecting additional work beyond the agreed terms without a corresponding increase in fees.
- Ongoing disagreements or misunderstandings are costing the business valuable time and resources.
- The business is concerned about liability, especially in a complex digital and in‑person service landscape.
- The business wants to safeguard its intellectual property, ensuring materials and creative works aren’t misappropriated – check out our insights on protecting your IP with a trade mark.
By having a comprehensive Service Agreement in place, businesses can avoid the frustration of chasing overdue payments and repeatedly clarifying policies, while also pre‑empting potential disputes before they escalate.
10 Things To Include In A Service Agreement
1. Scope
Clearly outline what the job entails. For example, if you’re installing blinds and the customer later requests additional work, include a section that details extra charges for any change in scope. This clarity avoids the need to draft a new contract each time adjustments are made.
2. Term
State the duration of the contract: is it a one‑off project or the beginning of an ongoing business relationship? Include the start and end dates and define conditions for any extensions or automatic renewals, so both parties know exactly when the agreement ceases or continues.
3. Payment
Detail when payment is due, the method of payment, and the consequences of late payment, such as interest charges. If a deposit is required at the time of booking, make that clear. To help set out solid payment terms, you might refer to our guidance on good business T&Cs that protect both parties.
4. Warranties
Clarify what warranties apply to the goods or services provided. Beyond the minimum covered by the Australian Consumer Law, you may wish to specify any additional warranties or conditions, particularly if third‑party goods are involved. This approach ensures both clarity and compliance with contemporary consumer guarantees.
5. Customer’s Obligations
Outline any responsibilities your customer must fulfil for you to deliver your services effectively. This might include timely approvals, providing access, all necessary information, or even adhering to safety guidelines when using equipment. Such clarity ensures a smoother, more efficient service delivery.
6. Intellectual Property
Define who owns the intellectual property created or supplied during the service. A comprehensive clause should cover any material you provide and protect you from unauthorised copying or use. For further security, explore our resources on protecting your intellectual property in today’s competitive market.
7. Liability
Set out who is responsible if things go wrong – whether it’s due to equipment failure, accidents on site, or any other unexpected issues. Detailing liability, along with any insurance requirements, minimises ambiguity and helps prevent costly legal disputes.
8. Dispute Resolution
Include a clear dispute resolution process that mandates steps such as mediation or arbitration before any legal proceedings are initiated. This proactive approach not only saves time and money but also helps preserve business relationships.
9. Termination
Explain the circumstances under which either party can terminate the contract. This section should outline the effects of termination, such as the return of rented equipment or the obligation to settle outstanding payments, ensuring both parties are aware of their rights and responsibilities.
10. Force Majeure
In the wake of recent global events and the changing business landscape of 2025, a robust Force Majeure clause is essential. It should define what qualifies as force majeure – be it natural disasters, pandemics, or supply chain disruptions – and clearly outline the implications for contractual obligations. For a detailed explanation, see our article on what is force majeure.
What Next?
It’s vital that your Service Agreement complies with the latest Australian Consumer Law, is crystal‑clear and unambiguous, and is presented in a format that your customers can easily understand – especially as businesses increasingly rely on digital platforms in 2025.
With the accelerating digital transformation across industries, many forward‑thinking businesses now integrate e‑signature and cloud‑based contract management systems to speed up agreements and reduce administrative overhead. By ensuring your Service Agreement is not only robust but also digitally integrated, you can simplify negotiations and build greater trust with your customers. If you’re ever uncertain whether your agreement meets 2025’s legal and technological standards, our team offers a comprehensive Contract Review and Redraft service to ensure your documents are up‑to‑date.
Here at Sprintlaw, we specialise in tailoring Service Agreements that protect your interests and streamline your operations. Don’t hesitate to reach out to us on 1800 730 617 or at team@sprintlaw.com.au for a free, no‑obligations consultation.
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