5 Clauses Every UK Service Agreement Needs
In the fast-paced UK business environment, generic templates are more than just a convenience; they are a liability. While a "one-size-fits-all" approach might seem cost-effective, it often fails to account for the specific jurisdictional nuances of England and Wales, leaving your business exposed to unnecessary risk and scope creep.
Preventing "scope creep" is essential for maintaining profitability. A robust agreement should define exactly what services are included and, crucially, what is excluded. This provides a clear baseline for negotiating additional fees when the project requirements inevitably evolve.
Cash flow is the lifeblood of any business. Your contract must specify payment milestones, VAT requirements, and the consequences of late payments. Referring to the Late Payment of Commercial Debts (Interest) Act 1998 ensures you have the legal right to claim interest and recovery costs.
Without a limitation clause, your personal or corporate assets could be at risk for unforeseen damages. We draft clauses that cap liability at an appropriate level (often linked to insurance or fees paid), while ensuring they remain "reasonable" under the Unfair Contract Terms Act 1977 (UCTA).
Relationships change. A clean exit strategy is vital. Your agreement should specify notice periods and the right to terminate immediately in the event of a material breach or insolvency, protecting you from being trapped in a toxic professional engagement.
Avoid the nightmare of litigating in a foreign court. For London-based businesses, specifying the jurisdiction of England and Wales and including a multi-tiered dispute resolution clause (Mediation before Litigation) can save significant time and legal expense.
Professional Drafting Saves Money
While the initial cost of a professionally drafted agreement is higher than a template, it is an investment in your company's security. At Dune Drafts, we provide bespoke legal writing that mirrors your business's meticulous standards.
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