The Long Term Service Contract is essential for businesses establishing ongoing service relationships in Hong Kong's dynamic business environment. This document is typically used when parties need to formalize a continuing service arrangement lasting one year or more, requiring detailed service levels, performance metrics, and comprehensive commercial terms. It's particularly relevant in Hong Kong's service-oriented economy, where international and local businesses frequently engage in long-term service arrangements. The contract addresses key aspects such as service delivery, performance standards, payment terms, and risk allocation, while ensuring compliance with Hong Kong's legal framework and business practices. It includes specific provisions for contract governance, data protection (under the Personal Data (Privacy) Ordinance), and dispute resolution mechanisms suitable for Hong Kong's jurisdiction.
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1. Parties: Identification of the service provider and service recipient with full legal names and registered addresses
2. Background: Context of the agreement and brief description of the parties' business relationship
3. Definitions: Definitions of key terms used throughout the agreement
4. Scope of Services: Detailed description of services to be provided, including core obligations and deliverables
5. Term and Renewal: Duration of the agreement and conditions for renewal
6. Service Provider's Obligations: Detailed responsibilities and commitments of the service provider
7. Client's Obligations: Responsibilities and commitments of the client, including cooperation and access requirements
8. Fees and Payment Terms: Pricing structure, payment schedule, invoicing requirements, and payment methods
9. Service Levels: Performance standards, KPIs, and measurement criteria
10. Intellectual Property Rights: Ownership and usage rights of pre-existing and created IP
11. Confidentiality: Protection and handling of confidential information
12. Data Protection: Compliance with Hong Kong's Personal Data (Privacy) Ordinance and data handling procedures
13. Liability and Indemnification: Limitation of liability and indemnification obligations
14. Termination: Grounds for termination, notice requirements, and consequences
15. Force Majeure: Events excusing performance and related procedures
16. Governing Law and Jurisdiction: Hong Kong law as governing law and jurisdiction for disputes
17. General Provisions: Standard boilerplate clauses including notices, assignment, and entire agreement
1. Change Control: Process for requesting and implementing changes to services - include when services may evolve over time
2. Business Continuity: Disaster recovery and business continuity requirements - include for critical services
3. Insurance: Insurance requirements and coverage levels - include for high-risk services
4. Anti-Corruption: Anti-bribery and corruption provisions - include when dealing with public sector or high-risk jurisdictions
5. Audit Rights: Right to audit service provider's performance and records - include for regulated industries or critical services
6. Security Requirements: Specific security protocols and requirements - include when handling sensitive data or systems
7. Transition Assistance: End of contract transition support - include for complex or business-critical services
8. Regulatory Compliance: Specific regulatory requirements - include for regulated industries
9. Subcontracting: Terms for engaging subcontractors - include when subcontracting is likely
1. Schedule 1 - Services Description: Detailed specification of services, including technical requirements and deliverables
2. Schedule 2 - Service Levels and KPIs: Detailed service level requirements, measurement methods, and penalties
3. Schedule 3 - Charges and Payment: Detailed fee structure, rates, expenses, and payment calculations
4. Schedule 4 - Key Personnel: List of key personnel from both parties and their roles
5. Schedule 5 - Implementation Plan: Timeline and milestones for service implementation
6. Schedule 6 - Change Control Procedure: Detailed process for requesting and implementing changes
7. Schedule 7 - Required Insurance: Specific insurance types and coverage levels required
8. Appendix A - Template Reports: Standard formats for required service reports and documentation
9. Appendix B - Security Policies: Detailed security requirements and procedures
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