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Service Agreement - General - Long Form


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Introduction
Description
Use
Table of Contents

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Introduction

When a business must perform work for which its own human resources are inadequate, it generally turns to the market to find the appropriate resources. As such, the business will have to enter into a service agreement with a third party that has the expertise and personnel required to ensure the proper performance of the desired work.

This document establishes the contractual framework of such a legal/commercial operation.

Description

The service agreement is the instrument by which a person, the provider, offers its services for tasks that the other party, the client, requires. This agreement sets out the tasks that the provider must perform in exchange for the consideration paid by the client. This is not an employment agreement: the provider is an independent contractor of the client.

Use

We recommend the use of this document when the client wishes to use the services of the provider without establishing a relationship of permanent or temporary employment. However, it is important to clarify that such an agreement may be considered by the courts as a contract of employment if the relationship between the parties involves a significant subordination of the provider to the client. It is a question of fact left to the discretion of the courts. If the service provider works exclusively for the client, if the latter controls how the service provider should carry out its duties, or if the client provides the necessary tools to accomplish the work to the service provider, it might be more appropriate to use an employment agreement (see Chapter C of the Business Precedents) to establish the terms of the relationship between the parties.

Table of Contents

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 Related Person
0.01.15 Schedule
0.01.16 Subsidiary
0.01.17 Tasks
0.01.18 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 Dates
(
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 Hourly Fees
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 Interests
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 Duration of Undertaking
8.01.03 End of Agreement
(
a) Request for Return
(
b) Destruction
8.01.04 Penalty
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Insurer
8.02.04 Prior Notice
8.02.05 Additional Named Insured
8.02.06 Certificates of Insurance
8.02.07 Notice of Modification or Cancellation
8.03 Indemnification
8.03.01 Scope
8.03.02 Procedure
8.03.03 Deductible
8.03.04 Limitation on Claims
8.04 Disclosure of Agreement
8.04.01 Undertaking
8.04.02 Default
8.04.01 Undertaking
8.04.02 Public Announcement
8.04.03 Exception
8.04.04 Default
9.00 DUTIES AND OBLIGATIONS OF CLIENT
9.01 Full Cooperation
9.02 Changes
10.00 DUTIES AND OBLIGATIONS OF PROVIDER
10.01 Schedule
10.02 Best Efforts
10.03 Monthly Report
10.04 Conduct
10.05 Confidential Information
10.05.01 Undertaking
10.05.02 Request for Return
10.05.03 Penalty
10.06 Non-Competition
10.06.01 Scope of Undertaking
10.06.02 Breach of Undertaking
(
a) Automatic Penalty
(
b) Payment
(
c) Protective Measures
10.07 Non-Solicitation of Clientele
10.07.01 Scope of Undertaking
10.07.02 Breach of Undertaking
(
a) Automatic Penalty
(
b) Payment
(
c) Protective Measures
10.08 Non-Solicitation of Personnel
10.08.01 Scope of Undertaking
10.08.02 Breach of Undertaking
(
a) Automatic Penalty
(
b) Payment
(
c) Protective Measures
10.09 Business Opportunities
10.10 Conflict of Interest
10.11 Intellectual Property
10.11.01 Assignment and Waiver
10.11.02 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 Choice of Forum
12.04 Counterparts
12.05 Amendment
12.06 No Waiver of Rights
12.07 Electronic Transmission
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 A – EXCERPT OF A RESOLUTION OF CLIENT
SCHEDULE B – EXCERPT OF A RESOLUTION OF PROVIDER
SCHEDULE 0.01.15 – SCHEDULE
SCHEDULE 0.01.17 – TASKS
SCHEDULE 0.01.18 – WORK - SPECIFICATIONS
SCHEDULE 10.07.01 A – NON-SOLICITATION - CLIENTELE
SCHEDULE 10.07.01 B – SERVICES COVERED BY NON-SOLICITATION UNDERTAKING

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