Terms to Include in a Terms of Service Shantanu 4th Yr. NLU, Odisha
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.
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.
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.
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.
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.
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.
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.