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A contract for services form exists to legally protect both parties when a service is performed and paid for. Independent contractors, small businesses, large companies, and entrepreneurs should always utilize a contract for services document and ensure that the document covers all parts of the service performed, payment, completion time, and any guarantees or refunds that are applicable.
A legally binding contract can greatly reduce the need to go to court and can save consumers and companies a significant amount of money spent on court costs and legal procedures to file a claim. Contracts for services cover in detail what type of service will be covered, the expected time the service is to be completed, the charge for the service, and who will be performing the service. The contract also should cover when payment is to be made, any applicable disclaimers, and any insurance clauses that may be applied to the business agreement.
If a company has a contract for services document signed by the company and by the client, it will be protected when payment is due and if the consumer has a complaint about the service performed. If the client's expectations for the service performed exceed what is in the contract, the company will not be legally obligated to redo the service. If a client does not think that the service was performed to the agreement in the contract, the client will be protected by the legally binding contract and the company will be obligated to fulfill its end of the contract.
Some states will require the contract to be notarized in order for it to be valid and legal. This does not apply to all states. It is in the best interest of both the company and the client to ensure they know what the laws are in their location regarding contract for services. The contract may be for a one-time service, or it may be for an agreement on a continued, on-going service. If it is for a continued on-going service, the stipulations should be included in detail and the contract should also cover any severance of service clauses.
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