1.What is the meaning of service agreement?
Service agreement is a contract between at least two parties in which one party desires to obtain the benefit of the services of the other party and the other party desires to render such services in Consideration of the promises and other good and valuable consideration or compensation. It is also called ‘Service Agreement letter’.
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2.What is the purpose of service agreement?
It is a legal binding contract and gives legal protection to some extent to all the parties involved. It helps in maintaining transparency and accountability between the parties.
3.What is the main elements of a service agreement?
Service Agreement is a contract in written and signed by both parties. The Service Agreement will provide the exact scope of work, as well as timeframes for completion of work, payment terms, mode of termination and dispute resolution mechanisms. When it is executed between an employer and employee it contains Party details, Rights and Duties of the employee and employer, Company & Position Title, Service conditions, leave policy, Benefits, Probation Period, Performance Reviews, Termination, Non-Competition and Confidentiality, Laws, Entire Agreement and Severability.
4.Is service agreement enforceable in India?
Service agreements are enforceable in India like any other contract and will be governed by the general principles of contract under the Indian Contract Act 1872. It shall not be in contravention with any law in force and public policy.
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Join Lawyers Directory!5.Is Section 27 of the Indian Contract Act a limitation to the Service Agreement?
If there are any reasonable restraints on the employee for the advantage of the company’s freedom of trade in a service agreement, in the context of the employer and employee relationship. In these cases, the agreement between the employee and the employer is not null and void. Such limits are imposed on the employee during the course of employment only and not after the job period has expired.