The Service Fee Agreement is a crucial commercial contract used when establishing professional service relationships in Hong Kong. It is commonly employed when a business or individual (the Service Provider) agrees to provide specific professional services to another party (the Client) for compensation. This document is essential for clearly defining the scope of services, payment terms, performance expectations, and risk allocation between parties. The agreement must comply with Hong Kong law, including the Contract and Rights of Third Parties Ordinance (Cap. 623) and the Supply of Services (Implied Terms) Ordinance (Cap. 457). It is particularly important for protecting both parties' interests by clearly documenting service expectations, payment obligations, and respective responsibilities.
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1. Parties: Identifies and provides full details of the service provider and service recipient
2. Background: Sets out the context and purpose of the agreement
3. Definitions and Interpretation: Defines key terms and establishes interpretation principles
4. Scope of Services: Detailed description of the services to be provided
5. Service Provider's Obligations: Key responsibilities and commitments of the service provider
6. Client's Obligations: Key responsibilities and commitments of the client
7. Fees and Payment Terms: Service fees, payment schedule, invoicing and payment mechanics
8. Term and Termination: Duration of agreement and circumstances for termination
9. Confidentiality: Obligations regarding confidential information
10. Intellectual Property: Ownership and usage rights of IP created or used in services
11. Liability and Indemnity: Allocation of risks and limitations of liability
12. Force Majeure: Provisions for handling events beyond parties' reasonable control
13. Notices: How formal communications between parties should be made
14. General Provisions: Standard boilerplate clauses including governing law, assignment, etc.
15. Execution: Signature blocks and execution formalities
1. Service Levels: Include when specific performance metrics need to be maintained
2. Data Protection: Include when personal data processing is involved
3. Anti-Bribery and Corruption: Include for high-value or government-related services
4. Insurance: Include when specific insurance coverage is required
5. Non-Competition: Include when competitive restrictions are necessary
6. Change Control: Include for complex services requiring formal change procedures
7. Audit Rights: Include when client needs right to audit service delivery
8. Business Continuity: Include for critical services requiring disaster recovery planning
1. Schedule 1 - Service Description: Detailed specifications of services to be provided
2. Schedule 2 - Fee Schedule: Detailed breakdown of fees, rates, and charges
3. Schedule 3 - Service Levels: Specific performance metrics and measurement criteria
4. Schedule 4 - Key Personnel: List of key staff assigned to provide the services
5. Schedule 5 - Form of Change Order: Template for documenting agreed changes to services
6. Schedule 6 - Data Processing Requirements: Specific requirements for handling personal data
7. Appendix A - Contact Details: Key contact information for both parties
8. Appendix B - Required Reports: Ƶ or specifications for required service reports
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