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Service Agreement

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Service Agreement between Internet Service Provider and Subscriber with a Liquidated Damage and Exculpatory Provision

This Service Agreement ("Agreement") is made this the day of , between ("ISP Provider"), having its principal place of business at (address) and ("Subscriber") located at (address).

WHEREAS, Subscriber desires to engage ISP Provider in order to obtain an Internet connection through ISP Provider's network.

NOW, THEREFORE, Subscriber and ISP Provider hereby agree to the following:

1. Payment for Service

A. Subscriber shall pay any setup charges and any one-time fees and the first period of service concurrent with the execution of this Agreement and prior to installation of service. Subscriber shall pay when invoiced any costs or fees billed by ISP Provider to Subscriber for additional services or merchandise provided. Bandwidth and usage charges will be billed on the calendar month preceding the invoice date based on the previous month's usage. Subscriber will pay for all costs associated with the use of their accounts, whether authorized or not.

B. Payments to ISP Provider are not refundable. No refunds shall be given for canceled accounts, returned merchandise, or installation fees unless the account, merchandise or installation was clearly defective and not working. Cancellations of accounts must be made by e-mail, U.S. mail, or fax and shall terminate at the end of the account period.

2. Subscriber and Equipment

The Subscriber is responsible for providing any and all equipment and services needed to access the ISP Provider's system.

3. Use Policy

A. Becoming a Subscriber or user of ISP Provider constitutes an agreement to abide by this Service Agreement and the acceptable use policies set out in this section. All references to ISP Provider in this Services Agreement include ISP Provider's system, network, and its employees. All references to Subscriber include any party authorized under the Service Agreement.

B. Subscriber may not use the ISP Provider's system and services in any way that violates United States federal, state, local, or international law or the rights of others. This prohibition includes, but is not limited to, any actions of subscriber which are threatening, obscene or defamatory, which violate trade secret, copyright, trademark or patent rights, which violates rights of privacy or publicity, which result in the spread of computer viruses or other damaging programs or data files, or which violate any export restrictions. ISP Provider will cooperate fully with law enforcement agencies if criminal activity is suspected.

C. Subscriber shall obey any acceptable use policies for sites, newsgroups, mailing lists, etc. accessed via the ISP Provider's system or network. Subscriber shall not probe, monitor, breach the security of, or otherwise interfere with any host, network, or system without the explicit authorization of the administrator(s) of the host, network, or system.

D. Subscriber shall not forge, conceal, disguise, or otherwise attempt to alter the identifying characteristics of electronic transmissions originating from their account(s).

E. Subscriber may not send unsolicited bulk e-mail. As a guideline, mailing more than messages simultaneously or in close proximity to individual recipients (with whom the Subscriber has no pre-existing relationship or who have not otherwise consented to receiving such e-mail) will be considered an unacceptable transmission which may result in termination of Subscriber's account. Any actions which ISP Provider, at its sole discretion, believes to be an attempt to circumvent the intent of this prohibition shall be treated as a violation of this provision.

1. ISP Provider and Subscriber agree that such transmissions and the fallout from such transmissions cause significant damage to ISP Provider in terms of resources and staff time as well as damage to the reputation of ISP Provider. ISP Provider and Subscriber further agree that these damages are difficult to calculate in a precise amount. Therefore should Subscriber distribute such e-mail or messages, Subscriber agrees that, in addition to any remedies provided under this Agreement, Subscriber shall be liable to ISP Provider in the amount of $ as liquidated damages. Should actual damages be ascertainable in excess of $ , Subscriber will be liable for the actual damages.

2. Subscriber shall also be liable for costs and attorneys' fees incurred collecting any such damages from Subscriber. Furthermore, should Subscriber contract for bulk e-mail or message posting services to advertise a service or Web site offered by Subscriber through ISP Provider's system or network, Subscriber shall be treated under this section as if Subscriber personally sent such e-mail or posts through the ISP Provider system or network.

F. If ISP Provider finds or suspects, in its sole discretion, subscriber is in violation of any rules set out in this section as an acceptable use policy, Subscriber's account may be immediately restricted, suspended or permanently be canceled.

G. ISP Provider reserves the right to modify the rules at any time by publishing such modifications over the service and sending notices to Subscriber by posting changes to the ISP Provider's Web site.

4. Use of Connection

Subscriber is explicitly not permitted to set up Internet hosts or daemons on its computer(s) through its accounts with ISP Provider. Subscriber agrees to disconnect from the Internet when not actively using it for more than at any time. Subscriber may not be connected more than hours in a row. Interpretation of this clause is at the sole discretion of ISP Provider's employees.

5. Termination for Improper Use

Infractions of this Agreement or the acceptable use policies set forth in this Agreement by Subscriber can result in immediate deletion of accounts without reimbursement. ISP Provider may make exceptions in the case of individual abusive users of business accounts. This decision is left entirely to the discretion of ISP Provider's employees.

6. Modification of Services

ISP Provider reserves the right to modify, add, or remove all services and features of the system at any time. Subscribers will receive adequate notice of such changes.

7. Disclaimer of Warranties

ISP Provider does not make any express or implied warranty of any kind, including, without limitation, any express or implied warranty of any kind, including, without limitation, any express or implied warranty of merchantability or fitness for a particular purpose for the services to be provided by ISP Provider under this Agreement.

8. Disavowal of Liability

Under no circumstances, shall ISP Provider or anyone else involved in administering, distributing or providing ISP Provider services, be liable for any indirect, incidental, special or consequential damages, including, without limitation, loss of revenues or lost profits, or damages that result from the use of or inability to use ISP Provider, services, mistakes, omissions, interruptions, deletion of files or e-mail errors, defects, viruses, delays in operation or transmission, failure of performance, theft, or destruction even if ISP Provider has been advised of the possibility of such losses. Because some states do not allow the exclusion or limitation of liability for consequential or incidental damages, in such states, ISP Provider liability is limited to the greatest extent permitted by law. In no event shall ISP Provider's liability to Subscriber exceed the aggregate amounts paid by Subscriber to ISP Provider for ISP Provider's services during the previous six months.

9. Indemnification

Subscriber agrees that it shall indemnify, defend and hold harmless ISP Provider and its officers, directors, employees, agents and shareholders from and against any costs, expenses (including, among other expenses, reasonable attorneys' fees and expenses), losses, damages (specifically excluding consequential, exemplary, special, indirect or punitive damages), suits, claims, or liabilities incurred and arising from or relating to Subscriber's use of ISP Provider's services.

10. Termination of Service

A. ISP Provider has the right to instantly cancel with or without warning all unpaid or not fully paid subscriptions. Any remaining unpaid subscription dues will be billed to the subscriber including extra fees for bounced checks. Bills unpaid more than days may be sent to a third party for collection and may incur a collection fee.

B. In the event of account termination or cancellation, the subscriber will have business days to access any remaining materials stored with ISP Provider. ISP Provider will forward e-mail free of charge for days.

11. Assignment

Subscriber shall not sell, transfer or assign this Agreement without the prior written consent of ISP Provider. Any unauthorized transfer or assignment shall be null and void; provided, however, that any such Assignment shall not relieve the subscriber of its obligations under this Agreement.

12. Modification

This Agreement may not be modified except in writing, signed by Subscriber and ISP Provider.

13. Governing Law

Interpretation and enforcement of this Agreement shall be governed by the laws of the State of . If any provision of this Agreement shall be held invalid or unenforceable in whole or in part for any reason, such provision shall be ineffective to the extent of such invalidity or unenforceability without in any manner affecting the validity or enforceability of any of the remaining provisions of this Agreement.

14. Attorney Fees and Costs

In any action brought under this Agreement, the prevailing party shall be entitled to recover its actual costs and attorney and all other litigation costs, including expert witness fees, and all actual attorney fees and litigation costs incurred in connection with the enforcement of a judgment arising from such action or proceeding. The provisions of the preceding sentence shall be severable from the provisions of this Agreement and shall survive the entry of any such judgment.

15. Entire Agreement

The parties acknowledge that this Agreement and any modifications to this Agreement, constitutes the complete Agreement regarding this subject, and supersedes any prior oral or written communications relating to this subject. In witness of the above, each party to this Agreement has caused it to be executed on the date indicated above.

WITNESS our signatures the day and year first written above.

Signature of ISP Provider

Signature of Subscriber

Enter text✕

What a Service Agreement Is and when it's used

A Service Agreement is a written contract that sets the terms between a service provider and a client, defining scope of work, deliverables, payment, timing, performance standards, confidentiality, indemnity, termination rights, and dispute resolution. It governs expectations and allocates risk for a defined engagement or ongoing services. Service Agreements can be standalone or part of a broader master services arrangement; they may be executed electronically under the ESIGN Act (15 U.S.C. §7001) and applicable state UETA laws when the parties satisfy intent, consent, attribution, and retention requirements.

Why a clear Service Agreement matters

A concise Service Agreement reduces ambiguity about deliverables, payment terms, deadlines, and liability, making disputes easier to avoid or resolve and supporting enforceability in court or arbitration when executed properly under ESIGN (15 U.S.C. §7001) or a state UETA framework.

Why a clear Service Agreement matters

Who typically drafts, signs, or receives this agreement

Common parties include business owners, independent contractors, agencies, and in-house legal or procurement teams responsible for service relationships.

  • Independent service providers and freelancers managing client engagements and invoicing.
  • Small and mid-size business owners contracting external vendors or consultants.
  • Legal, procurement, or finance teams reviewing terms and authorizing execution.

Signatures can come from authorized officers, managing partners, or individuals with delegated contract authority; verify signing authority before execution.

Step-by-step: completing and executing the Service Agreement

Follow a consistent sequence to prepare, review, and execute the agreement to limit negotiation cycles and ensure enforceability.

  • 01
    Draft clearly: Populate scope, price, term, and key schedules before review.
  • 02
    Internal review: Legal or finance reviews clauses for risk and tax consequences.
  • 03
    Authorize signers: Confirm each signer has delegated authority to bind their organization.
  • 04
    Execute and record: Sign electronically or on paper, then retain copies in the contract repository.

Core clauses to include in a professional Service Agreement

A well-drafted Service Agreement groups obligations and protections into clear clauses so parties understand duties, remedies, and administrative steps during the relationship.

Scope of Work

Define deliverables, milestones, acceptance criteria, locations, and any excluded services so payment and performance expectations are precise and measurable.

Payment and Invoicing

Specify fees, billing frequency, accepted payment methods, invoicing instructions, and remedies for late payment to reduce disputes and enable auditability.

Term and Termination

Set the agreement term, renewal mechanics, termination for cause or convenience, notice periods, and post-termination obligations such as final deliveries.

Confidentiality

Protect proprietary information with clear definitions, permitted disclosures, survival period, and exceptions for compelled disclosures.

Liability and Indemnity

Limit liability where appropriate, set indemnity obligations, and address insurance requirements to allocate financial risk.

Governing Law and Dispute Resolution

Choose governing jurisdiction and dispute process (court, arbitration, venue, attorney fees) to reduce uncertainty if disagreements arise.

Security and compliance features to document

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Audit Trail: Immutable timestamps and action logs
Access Controls: Role-based permissions and SSO support
HIPAA (BAA): Business Associate Agreement available
21 CFR Part 11: Compliance options for regulated records
Certifications: SOC 2 Type II and ISO 27001

Common drafting and execution pitfalls to avoid

  • Vague scope language that omits deliverable acceptance criteria often creates scope disputes and billing disagreements between parties.
  • Missing or inconsistent payment terms increase the risk of late payment, collection costs, and strained client relationships during enforcement.
  • Failure to confirm signer authority can render the agreement voidable or delay project start while parties obtain ratification.
  • Relying on informal email approvals without a clear signature block or audit trail complicates proof of consent in disputes.

Legal and financial risks from an incorrect or incomplete agreement

Breach Exposure: Damages, specific performance, or termination
Payment Disputes: Collections and interest charges
Invalid Signature: Enforceability challenges if execution defects
Confidentiality Loss: Reputational harm and potential statutory fines
Regulatory Noncompliance: HIPAA, tax, or industry penalties possible
Statute of Frauds: Certain transactions require written, signed contracts

Where to send, file, or store the executed Service Agreement

A clear routing and storage plan ensures access, auditability, and compliance for contracting teams and operational groups.

  • To the Parties: Each signer receives a final executed copy for records and operational use.
  • Internal Contracts Repo: Store in centralized contract management or shared drive with version history.
  • Finance and AP: Send invoicing and payment instructions to accounting for set-up.
  • Legal and Compliance: Place a redline and final version in legal folder for audits.

Typical digital workflow settings for executing a Service Agreement

Configure fields and notifications so signers see only relevant items and workflows proceed without manual handoffs.

Field Configuration
Signature Field Required; signer name and date auto-populate
Initials Field Optional; use for page-level acknowledgment
Conditional Clause Show only if specific payment option selected
Signer Authentication Email plus SMS code or advanced auth if needed

Digital signing and technical considerations

Check integration, file format, and authentication needs before sending the agreement for signature.

  • Integrations: Salesforce, NetSuite, Google Workspace, Microsoft 365
  • File Formats: PDF and DOCX supported; retain original formatting
  • Authentication: Email, SMS, KBA, or advanced signer verification

Ensure selected platform supports audit trails, retention, and any regulatory requirements such as HIPAA or 21 CFR Part 11 before executing electronically.

Key dates commonly tracked in a Service Agreement

Track critical dates and deadlines in a calendar shared with stakeholders to avoid missed payments or notice windows.

Effective Date:

MM/DD/YYYY — date obligations begin

Payment Due:

Specify net terms, e.g., Net 30 after invoice

Renewal Notice:

Provide written notice period for renewals or nonrenewal

Termination Notice:

Notice period required for termination for convenience

Record Retention:

Store executed contract per retention policy

Standard contracting milestones from draft to closeout

A sequential milestone view helps teams manage review cycles, approvals, and transition to operational delivery.

01

Draft Completion

Prepare final draft with attachments and schedules before review.

02

Internal Approval

Legal, finance, and procurement review and sign-off occur next.

03

Execution

Authorized signers execute; copies distributed to stakeholders.

04

Onboarding/Performance

Work begins under terms and performance monitored against milestones.

Practical examples showing real-world usage

These customer scenarios illustrate how Service Agreements are used across organizations to streamline execution and ensure compliance.

Optica Ventures — COO

Optica used electronic agreements to standardize vendor onboarding and reduce turnaround.

  • The platform simplified external client signing and recordkeeping.
  • Brian Fitzgibbons, COO, said the interface is simple and easy to use for the team and customers, improving execution speed and reducing administrative overhead.

Martin Properties — Founder

A small real estate firm processed service contracts and management agreements online.

  • Mobile signing enabled onsite closings and vendor approvals.
  • Tim Martin noted he could execute documents online with compliance and security, enabling faster deal flow and fewer in-person meetings.

Sample eSignature vendor comparison for executing Service Agreements

Basic vendor pricing and feature differences relevant to executing and managing Service Agreements; signNow appears first per vendor ordering requirements.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (premium tier) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No envelope cap 100 envelopes/user/year Varies by plan Varies by plan Varies by plan

Frequently asked questions and common issues

Answers address typical execution, enforceability, and administrative questions encountered when preparing or signing Service Agreements.


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