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Service Fee Agreement

Service Fee Agreement Template for Hong Kong

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Key Requirements PROMPT example:

Service Fee Agreement

"I need a Service Fee Agreement for my IT consulting company based in Hong Kong, providing cloud migration services to a multinational bank, with monthly billing and service level requirements, starting from March 2025."

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Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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: Templates or specifications for required service reports

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Linkedin in social icon imageX social icon image
alex.den.21@genieai.co
Relevant legal definitions
Agreement
Services
Service Provider
Client
Charges
Commencement Date
Confidential Information
Deliverables
Documentation
Effective Date
Force Majeure Event
Good Industry Practice
Intellectual Property Rights
Key Personnel
Material Breach
Payment Terms
Service Levels
Specifications
Term
Termination Date
Working Day
Change Order
Client Materials
Service Provider Materials
Applicable Law
Business Day
Contract Year
Group
Personal Data
Representatives
Service Credits
Service Hours
Service Location
Dispute
Emergency
Fees
Initial Term
Losses
Performance Standards
Related Entities
Reports
Review Meetings
Success Criteria
Territory
Third Party
Variation
Clauses
Interpretation
Appointment
Services
Service Levels
Service Provider Obligations
Client Obligations
Fees and Payment
Invoicing
Tax
Key Personnel
Subcontracting
Change Control
Intellectual Property
Confidentiality
Data Protection
Force Majeure
Term and Termination
Consequences of Termination
Liability and Indemnity
Insurance
Anti-Bribery and Corruption
Audit Rights
Assignment and Subcontracting
Variation
Waiver
Severability
Entire Agreement
Notices
Third Party Rights
Governing Law
Dispute Resolution
Relationship of Parties
Announcements
Survival
Counterparts
Business Continuity
Compliance with Laws
Non-Solicitation
Record Keeping
Warranties and Representations
Relevant Industries

Professional Services

Information Technology

Consulting

Financial Services

Legal Services

Marketing and Advertising

Engineering

Healthcare

Education and Training

Facilities Management

Business Process Outsourcing

Real Estate Services

Relevant Teams

Legal

Finance

Procurement

Operations

Commercial

Business Development

Compliance

Risk Management

Project Management

Account Management

Relevant Roles

Chief Executive Officer

Chief Financial Officer

Chief Operating Officer

General Counsel

Legal Counsel

Commercial Director

Procurement Manager

Contract Manager

Project Manager

Finance Manager

Operations Manager

Business Development Manager

Account Manager

Compliance Officer

Risk Manager

Industries
Contract and Rights of Third Parties Ordinance (Cap. 623): Governs the formation and enforcement of contracts in Hong Kong, including rights of third parties to enforce contractual terms
Supply of Services (Implied Terms) Ordinance (Cap. 457): Sets out implied terms in contracts for services, including requirements for reasonable care, skill, and time of performance
Control of Exemption Clauses Ordinance (Cap. 71): Regulates the use and effectiveness of exemption clauses in contracts, including service agreements
Trade Descriptions Ordinance (Cap. 362): Ensures truthful representation of services and prevents false trade descriptions
Electronic Transactions Ordinance (Cap. 553): Governs the validity of electronic signatures and contracts formed electronically
Limitation Ordinance (Cap. 347): Sets time limits for bringing legal actions relating to contract disputes
Personal Data (Privacy) Ordinance (Cap. 486): Regulates the collection, use, and handling of personal data in business relationships
Inland Revenue Ordinance (Cap. 112): Governs taxation of service fees and related income in Hong Kong
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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