A Preliminary Services Agreement is commonly used when parties need to undertake initial work or investigations before committing to a larger project. This agreement, governed by English and Welsh law, enables the service provider to commence preliminary work while protecting both parties' interests. It typically covers scope definition, payment terms, intellectual property rights, and conditions for proceeding to the main contract. The agreement is particularly useful in complex projects where feasibility studies, initial designs, or preliminary assessments are required before full project commitment.
Preliminary Services Agreement for the United Kingdom
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Key Requirements PROMPT example:
Preliminary Services Agreement
"I need a Preliminary Services Agreement for an IT consultancy to conduct a 3-month feasibility study starting March 2025, including data protection provisions and requirements for transition to a main development contract if the study is successful."
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1. Parties: Identifies the contracting parties and their details
2. Background: Sets out context and purpose of the preliminary services
3. Definitions: Defines key terms used throughout the agreement
4. Scope of Services: Details the preliminary services to be provided
5. Duration: Specifies term and termination provisions
6. Fees and Payment: Outlines payment terms and fee structure
7. Obligations of the Parties: Lists key responsibilities of each party
8. Confidentiality: Provisions for protecting confidential information
9. Liability and Indemnities: Defines liability limits and indemnification obligations
10. Governing Law and Jurisdiction: Specifies English and Welsh law as governing law and jurisdiction
1. Intellectual Property Rights: Include when services involve creation or use of intellectual property
2. Data Protection: GDPR and data protection obligations for personal data processing
3. Non-Compete: Restrictions on competitive activities when protecting business interests
4. Force Majeure: Provisions for unforeseen circumstances in long-term or high-value services
5. Insurance: Insurance requirements when specific coverage needs to be maintained
1. Schedule 1 - Services Description: Detailed specification of preliminary services
2. Schedule 2 - Fees and Payment Schedule: Breakdown of fees, rates and payment milestones
3. Schedule 3 - Service Levels: Performance metrics and quality standards
4. Schedule 4 - Key Personnel: Details of key staff involved in service delivery
5. Schedule 5 - Form of Main Agreement: Template or key terms of the main agreement to follow (if applicable)
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