The Service Provider Contract is essential for businesses operating in Pakistan that engage external service providers for various professional, technical, or operational services. This document is designed to comply with Pakistani legal requirements, particularly the Contract Act 1872, Income Tax Ordinance 2001, and other relevant legislation. It should be used when engaging independent contractors, consultants, or service firms to provide specific services while clearly distinguishing the relationship from employment. The contract typically includes detailed service specifications, performance metrics, payment terms, intellectual property rights, confidentiality provisions, and dispute resolution mechanisms. It's particularly important in the Pakistani business context where clear documentation of business relationships is crucial for tax compliance, regulatory purposes, and risk management.
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1. Parties: Identification of all contracting parties with full legal names, addresses, and registration details as required under Pakistani law
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 deliverables and performance standards
5. Term and Commencement: Duration of the agreement and conditions for commencement
6. Payment Terms: Fees, payment schedule, invoicing requirements, and tax considerations under Pakistani tax laws
7. Service Provider's Obligations: Key responsibilities and warranties of the service provider
8. Client's Obligations: Key responsibilities of the client, including provision of information and access
9. Intellectual Property Rights: Ownership and usage rights of pre-existing and created IP
10. Confidentiality: Protection of confidential information and trade secrets
11. Data Protection: Obligations regarding data handling and privacy
12. Liability and Indemnification: Limitation of liability and indemnification provisions
13. Termination: Grounds for termination and consequences
14. Force Majeure: Provisions for unforeseen circumstances preventing performance
15. Governing Law and Jurisdiction: Specification of Pakistani law as governing law and jurisdiction details
16. Dispute Resolution: Process for resolving disputes, including arbitration under Pakistani law
17. General Provisions: Standard boilerplate clauses including notices, amendments, and severability
1. Service Levels: Detailed service level agreements (SLAs) - include when specific performance metrics are required
2. Compliance with Laws: Specific regulatory compliance requirements - include for regulated industries
3. Insurance: Insurance requirements - include for high-risk services or when required by industry standards
4. Non-Compete: Restrictions on competitive activities - include when protecting market position
5. Assignment and Subcontracting: Rights to assign or subcontract - include when relevant to service delivery model
6. Change Control: Process for managing changes to services - include for complex or long-term contracts
7. Transition and Exit: Provisions for service transition and termination - include for critical services
8. Performance Review: Regular review and reporting requirements - include for ongoing service relationships
9. Bank Guarantee: Requirements for performance security - include for high-value contracts
1. Schedule 1 - Service Description: Detailed specification of services, methodologies, and deliverables
2. Schedule 2 - Fees and Payment: Detailed fee structure, rates, and payment terms
3. Schedule 3 - Service Levels: Specific performance metrics, measurement methods, and penalties
4. Schedule 4 - Key Personnel: Details of key team members and their roles
5. Schedule 5 - Client Materials: List of materials, information, or resources to be provided by the client
6. Schedule 6 - Technical Requirements: Technical specifications and requirements
7. Appendix A - Form of Invoice: Template for invoices meeting Pakistani tax requirements
8. Appendix B - Change Request Form: Standard form for requesting and documenting changes
9. Appendix C - Contact Details: Contact information for key representatives of both parties
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