Client service agreements, or CSAs, are written contracts put in place to protect your interests during a business transaction. While not mandatory for every type of business exchange, having a well-drafted CSA is highly recommended in the vast majority of situations where goods or services are offered to clients.
Also known as a service agreement or client contract, a CSA is a legally binding document that outlines the terms and conditions of the business exchange. Although it can become a rather lengthy document with numerous key provisions, it puts protections in place to minimize risk and reduces the potential for future disputes or litigation.
When You Should Use a CSA
Client service agreements serve several purposes. Not only do they outline the terms and conditions of the business relationship, including the scope of services and payment terms, but they are also preventive in terms of mitigating potential legal risks. A well-drafted CSA will detail expectations for both parties and can effectively head off potential disputes.
Most business exchanges should include a CSA. Even if you trust your client, words are just words. Formalize the agreement in writing if you plan to engage in any business exchange including but not limited to the following examples:
- Service-based businesses – Examples include work done by consulting firms, marketing agencies, IT service providers and other businesses that deliver services to their clients.
- Professional service providers – Lawyers, accountants, real estate agents, architects and others often use CSAs to detail their responsibilities, confidentiality obligations, fees, and liabilities to clients.
- Contractors and freelancers – Independent contractors and freelancers should use CSAs when engaging with clients to establish the terms of their services, payment terms, ownership of work product, and confidentiality obligations.
In these examples and any other scenario where you’ll be providing a business service, both parties should sign a client contract before beginning work.
Key Provisions to Include in Your CSA
The details of client service agreements will vary from client to client. As you consider the needs specific to your business, get in touch with our corporate law team at the Law Offices of Alex D. Sirulnik, P.A. We can help you prepare and review contracts to ensure your interests are protected.
There are several provisions you can include in your CSA. Not all may be necessary depending on the relationship, but these are several to consider. You can read more about each of them on our blog.
- Scope of Services
- Terms
- Compensation
- Indemnity Clause
- Governing Law Clause
- Benefits; Binding Effect Clause
- Severability Clause
- Waivers and Damages Clause
- Entire Agreement Clause
- Notices Clause
For help creating legally binding contracts for your Miami business, contact our team at the Law Offices of Alex D. Sirulnik, P.A.