Terms to include in a terms of service
- 1. Terms to Include in a Terms of Service Shantanu 4th Yr. NLU, Odisha
- 2. Terms of Service • It is an agreement which is entered into by the service provider and his client to finalize the terms according to which the project is to be completed. • It is necessary so as to ensure that the client and the services provider are on the same page in order to avoid any future complications.
- 3. Charging Fee • Most important aspect of the agreement. • Service provider and the client should agree to it in the same sense. • The rate charged should be specified. • Application for rate – hourly, daily or weekly.
- 4. Delay in Payment • Give your clients a grace period for payment. • Consequences of exceeding grace period should be specified. • Consequences could be imposition of a late fee or a higher rate of interest.
- 5. Limiting Outstanding Debt • A cap upon the outstanding debt should be specified to avoid having large unpaid bills. • Encourages your client to pay at regular intervals. • Consequences could be suspension of work.
- 6. Working Hours • It must be specified in the agreement. • It is necessary so as to notify the client the time period in which he can expect the service provider to work. Sudden Termination of Project • In case of an unforeseen event which is out of the control of the service provider, the terms of payment and assignment of the work done till date should be specified.
- 7. Client’s Acceptance to Work • The client should accept the work wholly. • Once he rejects it, then he is not allowed to use it either wholly or partly. • If he rejects but still uses the work, then through this provision you can claim damages.
- 8. Rights Over the Work • Agreement should provide for the clear demarcation of rights of the service provider and the client over the work. • Provider can restrict the right to usage of the work by the client. • A restriction as to making of its copies and its marketing can also be put into the agreement.
- 9. Thank You