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.
