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Supply of services agreement
I need a supply of services agreement for a local vendor providing IT support services, including network maintenance and troubleshooting, with a contract duration of 12 months. The agreement should include service level agreements (SLAs), confidentiality clauses, and a termination notice period of 30 days.
What is a Supply of services agreement?
A Supply of services agreement sets out the terms when one party provides professional services to another in Nigeria. It's commonly used by consultants, IT providers, maintenance companies, and other service businesses to clearly define what they'll deliver, how much they'll charge, and when they'll complete the work.
These agreements protect both sides under Nigerian contract law by spelling out key details like payment schedules, service quality standards, and what happens if things go wrong. They're especially important for ongoing service relationships and must comply with the Nigerian Contract Act and relevant industry regulations. Smart businesses use them to avoid disputes and maintain smooth working relationships.
When should you use a Supply of services agreement?
Use a Supply of services agreement any time your business hires external professionals or provides services to others in Nigeria. This includes situations like engaging IT consultants, hiring maintenance contractors, bringing in marketing agencies, or offering professional services to clients. The agreement becomes essential when the services involve significant costs, extend over time, or carry business risks.
It's particularly valuable for protecting both parties when services are complex or mission-critical. Nigerian businesses need these agreements before starting work with new service providers, during contract renewals, or when expanding service scope. They help prevent misunderstandings about deliverables, timelines, and payment terms while ensuring compliance with local regulations.
What are the different types of Supply of services agreement?
- Supply And Service Agreement: Comprehensive agreement covering both product delivery and ongoing services, ideal for businesses offering combined solutions
- Electricity Supply Agreement: Specialized version for power generation and distribution services, with specific regulatory compliance terms
- Food Supply Contract: Tailored for food service providers, including health standards and delivery specifications
- Contract To Supply Goods: Product-focused version emphasizing delivery terms and quality standards for physical items
Who should typically use a Supply of services agreement?
- Service Providers: Companies or professionals offering specialized services, from IT consultants to cleaning companies, who need to outline their service terms and protect their interests
- Corporate Clients: Nigerian businesses receiving services, including banks, manufacturers, and tech companies who require clear service standards and deliverables
- Legal Teams: In-house counsel or external law firms who draft and review agreements to ensure compliance with Nigerian business laws
- Procurement Officers: Staff responsible for managing service contracts and ensuring vendors meet contractual obligations
- Industry Regulators: Government bodies that monitor service agreements in regulated sectors like telecommunications and banking
How do you write a Supply of services agreement?
- Service Details: List specific deliverables, timelines, and quality standards expected from the service provider
- Party Information: Gather full legal names, registration numbers, and contact details of all involved parties
- Payment Terms: Document fee structures, payment schedules, and any performance-linked payment conditions
- Legal Requirements: Check relevant Nigerian industry regulations and licensing requirements for the service type
- Risk Management: Define liability limits, insurance requirements, and confidentiality obligations
- Contract Period: Specify start dates, duration, and renewal terms clearly
- Review Process: Use our platform to generate a legally-sound draft, then review with key stakeholders
What should be included in a Supply of services agreement?
- Party Details: Full legal names, addresses, and registration numbers of service provider and client
- Service Description: Detailed scope of services, deliverables, and performance standards
- Payment Terms: Fee structure, payment schedule, and invoicing procedures under Nigerian law
- Duration: Contract start date, end date, and renewal conditions
- Termination Rights: Grounds for ending the agreement and notice periods
- Confidentiality: Protection of sensitive business information and trade secrets
- Dispute Resolution: Nigerian jurisdiction choice and arbitration procedures
- Liability Limits: Clear boundaries of responsibility and indemnification terms
What's the difference between a Supply of services agreement and a Supply of goods agreement?
A Supply of services agreement differs significantly from a Supply of goods agreement in several key aspects. While both are common in Nigerian business, understanding their distinct purposes helps choose the right document for your situation.
- Primary Focus: Supply of services agreements cover ongoing professional work and expertise delivery, while goods agreements deal with physical product transfers and deliveries
- Performance Metrics: Service agreements emphasize quality standards and service levels, whereas goods agreements focus on product specifications and delivery schedules
- Duration Structure: Service agreements typically involve ongoing relationships with regular performance reviews, while goods agreements often cover discrete transactions
- Liability Scope: Service agreements include professional negligence and performance guarantees, while goods agreements concentrate on product quality and warranty terms
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