When a business must carry out a project for which it does not already have the appropriate human resources, it must find an external resource that has the expertise and resources it seeks and enter into a service agreement with that party. Our document provides the means to contractually define such a relationship.

The service agreement is the agreement by which the service provider offers services to perform the tasks the client requires for consideration paid by the client. It is not an employment agreement, because the service provider remains independent from the client.

We recommend using this document when you wish to retain the services of a provider without, however, creating a permanent or temporary employment relationship. However, keep in mind that if the relationship between the parties implies that the service provider is subordinate to the client, it could nevertheless be construed as an employment agreement. It is a matter of fact and, thus, subject to legal interpretation. If the service provider works only for a particular client, and that client controls the way the provider performs the work and supplies the working tools, it is more appropriate to use an employment agreement to define the terms of the legal relationship between the parties.

0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Agreement
0.01.03 Best Efforts
0.01.04 Breach
0.01.05 Change in Control
0.01.06 Confidential Information
0.01.07 Force Majeure
0.01.08 Intellectual Property
0.01.09 Law
0.01.10 Legal Representatives
0.01.11 PARTY
0.01.12 Person
0.01.13 Prime Rate
0.01.14 Project
0.01.15 Related Person
0.01.16 Schedule
0.01.17 Subsidiary
0.01.18 Tasks
0.01.19 Work
0.02 Entire Agreement
0.03 Applicable Law
0.04 Non-Compliance
0.04.01 Severability
0.04.02 Substitute Provision
0.05 Miscellaneous
0.05.01 Cumulative Rights
0.05.02 No Waiver
0.05.03 Time and Days
a) Time of the Essence
b) Computation of Time
c) Delays
0.05.04 Financial References
0.05.05 Cross References
0.05.06 Gender and Number
0.05.07 Headings
0.05.08 Presumptions
0.05.09 Knowledge
0.05.10 Approval
0.05.11 Accounting Standards
1.00 PURPOSE
1.01 Services
1.02 Conditions
1.02.01 Required by CLIENT
1.02.02 Required by PROVIDER
1.02.03 Election
2.00 CONSIDERATION
2.01 Professional Fee
2.02 Increase
2.03 Expenses
3.00 TERMS OF PAYMENT
3.01 Fees and Expenses
3.02 Interest
3.03 Loss of Term
4.00 SECURITY
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Canadian Status
5.06 Commission
5.07 Insurance
5.08 Nominee
5.09 Independent Legal Advice
5.10 Fundamental Provisions
5.11 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF CLIENT
6.01 Important Facts
7.00 REPRESENTATIONS AND WARRANTIES OF PROVIDER
7.01 Resources
7.02 Conflict of Interest
8.00 MUTUAL DUTIES AND OBLIGATIONS
9.00 DUTIES AND OBLIGATIONS OF CLIENT
9.01 Cooperation
9.02 Change Orders
10.00 DUTIES AND OBLIGATIONS OF PROVIDER
10.01 Permits and Licences
10.02 Insurance
10.02.01 Insured Risks
10.02.02 Amount of Coverage
10.02.03 Insurer
10.02.04 Prior Notice
10.02.05 Additional Named Insured
10.02.06 Certificates of Insurance
10.02.07 Notice of Modification or Cancellation
10.03 Schedule
10.04 Best Efforts
10.05 Monthly Report
10.06 Conduct
10.07 Confidential Information
10.07.01 Acknowledgement
10.07.02 Request for Return
10.07.03 Penalty
10.08 Non-Competition
10.08.01 Scope of Undertaking
10.08.02 Penalty
a) Amount
b) Payment
c) Protective Measures
10.09 Non-Solicitation of Customers
10.09.01 Scope of Undertaking
10.09.02 Breach of Undertaking
a) Penalty
b) Payment
c) Protective Measures
10.10 Non-Solicitation of Personnel
10.10.01 Scope of Undertaking
10.10.02 Breach of Undertaking
a) Penalty
b) Payment
c) Protective Measures
10.11 Business Opportunities
10.12 Conflict of Interest
10.13 Intellectual Property
10.13.01 Assignment and Waiver
10.13.02 Use
11.00 SPECIAL PROVISIONS
11.01 No Assignment
11.02 Transfer by CLIENT
11.02.01 Internal
11.02.02 External
11.03 Relationship Between the PARTIES
11.04 Remedies
11.04.01 Choice
11.04.02 No Limitations
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
a) Written Notice
b) Meeting
12.02.02 Mediation
a) Process
b) Mediator
c) Settlement
d) Legal Proceedings [OR Arbitration]
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 No Waiver of Rights
12.07 Electronic Transmission and Signature
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 By the CLIENT
13.03 By the PROVIDER
13.04 Cessation of Relationship
14.00 EFFECTIVE DATE
15.00 DURATION
15.01 Probation Period
15.02 Initial Term
15.03 Renewal
15.04 Non-Renewal
15.05 Survival
16.00 SCOPE


SCHEDULE 0.01.16 – SCHEDULE
SCHEDULE 0.01.18 – TASKS
SCHEDULE 0.01.19 – WORK
SCHEDULE 10.09.01 A – CUSTOMER LIST
SCHEDULE 10.09.01 B – SERVICES COVERED BY NON-SOLICITATION UNDERTAKING