Contracts for paid services
Type
Name
Service agreements |
Maintenance contracts |
Instructions for preparing a service agreement in the Contract and Form Designer
Under a contract for the provision of services for a fee, the contractor undertakes to provide services on the instructions of the customer, i.e. perform certain actions or carry out certain activities, and the customer undertakes to pay for these services.
A service is an activity or certain actions of a performer aimed at meeting the needs of another person (safety, health, training, communication, obtaining information, etc.). The service has no material result and is inseparable from the personality of the performer. The same service provided by different providers may have different results. To provide certain types of services, such as medical, educational or communication services, the contractor must have a license.
The Civil Code regulates the provision of paid services in articles 779 – 783. These articles apply to such services as:
- medical and veterinary;
- auditing and consulting;
- information and training services;
- tourist services, communication services, etc.
The list of types of services specified in Article 779 of the Civil Code of the Russian Federation is not complete, but when concluding an agreement for services that are not on this list, care must be taken to ensure that the contractor’s activities do not fall under other civil law norms.
For example, services such as transportation, storage, commission, commission, bank deposit and bank account, research and development work are considered by special chapters of the Civil Code of the Russian Federation. In addition, the provisions on contracting and domestic contracting apply to the contract for the provision of services.
Selecting the type of contract
The process depends on the specific goals of the organization and the conditions for its implementation.
Types of service contracts:
- Provision of communication services . Involves concluding agreements with operators to provide corporate tariffs.
- Providing medical services . This is especially true for enterprises that require regular medical examinations of employees.
- Providing educational services . Necessary for legal education of specialists, professional training and retraining.
- Conducting consultations and audits.
In terms of the duration of the agreement, the most popular are one-time service agreements, which involve the one-time provision of a specific type of service from one legal entity to another.
The opposite is a contract for the provision of multiple services, which involves the provision of services several times or in a systematic manner.
Features of the agreement
Conclusion process
, the period of provision and its method.
A clear description of the services provided- Definitions of the format for the provision of services : independently by the contractor with the involvement of a co-contractor, with the choice of a co-contractor and his agreement with the customer, or without approval.
- Procedure for reimbursement of incurred expenses . Who pays, who agrees, and how their reimbursement will occur. The answers to these questions must be reflected in the text of the contract.
- Terms of payment. Payment will be made in full upon completion of the services provided, or an advance payment or payment periodicity is expected.
- Pay. Agreements for the provision of services between legal entities always have a reimbursable basis, while work can be performed free of charge for non-profit organizations, such as charitable foundations. This does not exclude payment by barter or other values other than cash.
How to conclude a service agreement
In order for a service agreement to be considered concluded, it is sufficient to comply with a simple written form of the transaction. At the same time, if the parties decide to conclude a service agreement in a certain form (notarization; signing of each page of the agreement; a form of a certain sample; mandatory annexes to the agreement, etc.), then failure to comply with this form will entail the nullity of the transaction.
A simple written form of a transaction for a service contract is understood to mean any of these methods:
- the parties sign a service agreement in the form of a single document;
- the customer and the contractor exchange written documents using postal, telephone, electronic or other communications;
- the customer or contractor who received the offer, i.e. an offer to conclude an agreement, performs actions according to the proposed conditions (pays an invoice for services or begins to provide them) or expresses in writing his consent to the terms of the offer.
A document confirming the conclusion of a service agreement can be an invoice agreement. The parties draw it up at their own discretion, but it must contain a description of the service, an invoice for its payment, and details of both parties. The invoice agreement is not very popular in Russian practice, because... does not allow us to take into account many contractual conditions that, although not called essential, are important for the parties to the service agreement.
Essential terms of the service agreement
One essential condition of a service contract in the Civil Code is its subject, i.e. specific actions or activities of the performer . If the subject of the service agreement is not described in the text, then such an agreement may be considered not concluded, which means that the contractor will not be able to demand payment from the customer for services. But the customer under a service agreement with an unagreed subject may demand from the contractor the return of the advance payment as unjust enrichment with the accrual of interest for the use of someone else’s money.
If, for example, such a general concept as “household services” is specified as the subject of a service contract, then the court may consider that the subject of the contract is not specified and not agreed upon by the parties, therefore, when drawing up the contract, it is worth using the characteristics of the types of activities specified in the OKVED and OKUN classifiers .
In addition to the description of the contractor’s activities under the service agreement, it is also necessary to indicate the scope of services (in cases where this is necessary). For example, this may be the number of hours of oral consultations or documents drawn up, the area of the cleaning room, the volume of household waste removed, etc.
In some cases, the subject matter of the service contract must describe the place where the service is provided. Thus, when providing security services, it is necessary to indicate the specific object to be protected. This may also be an indication of the location of the land on which the harvest will be carried out, the location of the entertainment event, the address of the territory from which the garbage must be removed. Finally, when providing services such as maintenance of equipment or machinery, it is necessary to describe the equipment itself that is to be serviced. Thus, the more detailed the subject of the contract is described when concluding a service contract, the lower the risk of disputes between the parties regarding the proper performance of their duties.
In addition to the subject of the service contract, we recommend agreeing on such important conditions as:
- terms for the provision of services (just as in a contract, the parties can indicate the initial, intermediate and final terms);
- quality of service (here, for example, you can specify the requirements for the qualifications of the contractor, the use of certain equipment, compliance with GOST or SanPiN standards, etc.);
- procedure for delivery and acceptance of services provided;
- cost of services and payment procedure;
- the possibility of providing services by the contractor not personally, but through the involvement of third parties.
Service agreement between legal entities: sample
A sample agreement is here.
Service agreement
St. Petersburg February 14, 2021
LLC "TelecomRu", hereinafter referred to as the "Contractor", represented by General Director Vladimir Konstantinovich Yustinov, acting on the basis of the charter of the LLC dated March 25, 2005, on the one hand, and LLC "YurConsult", hereinafter referred to as the "Customer", represented by General Director Virchishin David Lvovich, acting on the basis of the LLC charter dated July 12, 2004, on the other hand, collectively referred to as the “Parties” or “Party”, have entered into this Agreement as follows:
1.TERMS
1.1. “Billing period” is the calendar month beginning immediately after the month in which communication services were provided to the Customer.
1.2. “Tariff” - the price at which payment is made for the provided communication services between the Parties.
1.3. “Communication service” - communication services that are provided by the Contractor to the Customer under this Agreement using the Contractor’s equipment.
2. SUBJECT OF THE AGREEMENT
2.1. The Contractor under this Agreement undertakes to provide the Customer with Communication Services, and the Customer undertakes to pay for Communication Services on the terms and in the manner set out in this Agreement.
3. TERMS OF PROVISION OF COMMUNICATION SERVICES
3.1. After concluding this Agreement, the Customer has the right to receive Communication Services, and the Contractor, if technically possible and if the Customer has access to telematic communication services, is obliged to provide Communication Services to the Customer.
3.2. Communication services are provided with the preliminary selection of the Contractor as a telematics operator.
3.3. To receive Communication Services, the Customer must complete the following actual sequential actions:
- make an advance payment in the amount and according to the calculations specified in Appendix No. 3 to this Agreement;
- upon the Contractor's request, provide access to the Customer's premises and final equipment.
3.4. The communication service is considered provided from the moment the Customer connects to the network, after the Customer performs the actions specified in clause 3.3. actual agreement.
Agreement for the provision of services by an individual to a legal entity.
Read here how to draw up an agreement for the provision of legal services.[/anchor]
How to draw up an agreement for the provision of services between legal entities, read the link:
4. RIGHTS AND OBLIGATIONS OF THE PARTIES
4.1. The Contractor undertakes:
4.1.1. Provide Communication Services in accordance with the legislation of the Russian Federation, national standards, technical norms and rules, in compliance with labor protection rules and instructions approved by the Contractor, as well as this Agreement.
4.1.2. Eliminate within 2 (two) days any malfunctions that arose due to the Contractor’s fault and impede the use of the Communication Services.
4.1.3. Notify the Customer about changes in the terms of service, payment methods for communication services, Tariffs at least 5 (five) days before the date of introduction of such changes by sending a written message.
4.1.4. Create a Certificate of Services Rendered in the Billing Period in 2 copies and send it to the Customer within 3 (three) days.
4.1.5. Fulfill other obligations provided for by the current legislation of the Russian Federation and this Agreement.
4.2. The performer has the right:
4.2.1. Change unilaterally the Tariffs, terms and conditions of payment in accordance with clause 4.1.3. actual agreement.
4.2.2. Temporarily suspend the provision of access to the Customer's Communication Services in the cases provided for in clause 6.2. actual agreement.
4.3. The customer undertakes:
4.3.1. Make payment for the communication services provided to him within the terms and conditions provided for in this Agreement.
4.3.2. Sign the Certificate of Services Rendered within the Billing Period within 5 (five) days. In case of disagreement with the contents of the Certificate, send within the same period a written reasoned refusal to sign the Certificate of Services Rendered. In case of failure to send the Certificate of Services Rendered or refusal to sign it, the Communication Services for the corresponding Billing Period will be recognized as properly provided.
4.3.3. Fulfill other obligations provided for by the current legislation of the Russian Federation and this Agreement.
4.4. The customer has the right:
4.4.1. Make claims on the received invoice in the manner provided for in Section 7 of this Agreement.
4.4.2. Refuse to pay for communication services provided to the Customer without his consent. Communication services are considered provided to the Customer with his consent if the actions specified in clause 3.3 have been performed. actual agreement.
5. COST OF COMMUNICATION SERVICES AND PAYMENT PROCEDURE
5.1. Tariffs for Communication Services are established by the Parties by signing the Additional Agreement to this Agreement and may be changed subject to the Contractor's compliance with the provisions of clause 4.1.3. actual agreement.
5.2. The charging unit is 120 Mbit/sec. The tariff unit can be changed by the Contractor at any time unilaterally.
5.3. Payment for services is made by the Customer on the basis of an invoice issued by the Contractor within 5 (five) days from the date of its receipt by the Customer. If required by law, the Contractor also issues an invoice to the Customer.
5.4. The Customer pays for the Communication Services provided to him under this Agreement exclusively using the bank details specified in the invoice for payment for Communication Services, or in cash at the Contractor's payment points.
5.5. An invoice for payment for Communication Services provided in the month preceding the Billing Period is issued to the Customer before the 28th day of the Billing Period indicating the total amount of payment, as well as indicating each type of Services, their volume and cost. The basis for issuing an invoice to the Customer is the data obtained using the equipment used to record the volume of communication services provided.
5.6. At the end of the calendar year or as necessary, the Parties draw up and sign in 2 copies a Statement of Reconciliation of Settlements, which indicates the periods, volumes and cost of the provided Communication Services.
6. LIABILITY OF THE PARTIES AND FORCE MAJEURE CIRCUMSTANCES
6.1. For failure to fulfill or improper fulfillment of their obligations under this Agreement, the Parties are liable in accordance with the current legislation of the Russian Federation.
6.2. In the event of a delay in payment or other violation by the Customer of the requirements established by the Federal Law “On Communications” or this Agreement, the Contractor has the right to suspend the provision of access to Communication Services for a period until the Customer fully repays the debt or, accordingly, eliminates other violations committed by the Customer. The resumption of access to the Communication Services is carried out by the Contractor within 2 (two) business days from the date the Customer fulfills the violated obligations in a proper manner.
6.3. For each day of delay in payment for services rendered, the Contractor has the right to collect from the Customer a penalty in the amount of 5% of the cost of the Communication Services provided in the month preceding the Billing Period for each day of delay, but not more than the amount payable. The Customer is obliged to pay the penalty to the Contractor within 4 (four) days from the date of presentation of the demand for payment.
6.4. The parties are released from liability for non-fulfillment or improper fulfillment of their obligations under this Agreement if they prove that proper fulfillment was impossible due to force majeure, that is, extraordinary, unforeseen and unpreventable circumstances under the given conditions. At the same time, the presence of force majeure extends the period for the Parties to fulfill their obligations under the Agreement in proportion to the duration of its validity. If force majeure lasts more than six months, the Parties are obliged, at the proposal of one of the Parties, to agree on further terms of action and/or the possibility of terminating this Agreement.
7. DISPUTE RESOLUTION
7.1. In case of non-fulfillment or improper fulfillment of obligations arising from this Agreement, the Customer, before going to court, presents a claim to the Contractor in accordance with Art. 55-56 of the Federal Law of July 7, 2003 N 126-FZ “On Communications”.
7.2. If the claim is rejected in whole or in part or if a response is not received within the time period established for its consideration, the Customer has the right to file a claim with the Arbitration Court of St. Petersburg and the Leningrad Region.
8. TERM AND CONDITIONS FOR CHANGE AND TERMINATION OF THE AGREEMENT
8.1. This Agreement is valid from the moment it is signed by the Parties and is concluded for a period of 2 (two) years from the date of its commencement.
The Agreement is automatically extended for the next year, unless otherwise stated by either Party 2 (two) months before its expiration.
8.2. This Agreement may be terminated early in cases and in the manner provided for by the current legislation of the Russian Federation.
8.3. In the event of termination of this Agreement, the Parties must make mutual settlements for all obligations.
8.4. All changes and additions to this Agreement are made in writing and signed by authorized representatives of the Parties in two copies.
9. OTHER CONDITIONS
9.1. This Agreement is drawn up and signed in two copies having equal legal force, one copy for each Party.
10. ADDRESSES, DETAILS AND SIGNATURES OF THE PARTIES
Customer:
- Legal address: 832903, St. Petersburg, st. Postal, 194/2;
- Postal address: 832903, St. Petersburg, st. Postal, 194/2;
- Phone fax;
- INN/KPP: 8388239739/323748345;
- Current account: 83882378300383495493;
- Bank: PJSC "MetaBank";
- Correspondent account: 38823838293040583459;
- BIC:
Head of the organization
_______________/IN. K. Yustinov
M.P.
Executor:
- Legal address: 832903, St. Petersburg, st. Mikhailovskaya, 173/3;
- Postal address: 832903, St. Petersburg, st. Mikhailovskaya, 173/3;
- Phone fax;
- INN/KPP: 8382378937/388238345;
- Current account: 37238789372938459234;
- Bank: PJSC "FBBank";
- Correspondent account: 48388378383928349344;
- BIC: 388238893;
Head of the organization
______________/D. L. Virchyshyn
M.P.
How to terminate a contract for paid services early
The quality of any service is difficult to assess initially, from the outside, so the customer may at any time have a desire to terminate the contract for the provision of services by a specific contractor - due to the low quality of the service, violation of the deadlines for its provision, or simply loss of interest in the service. The contractor may also have reasons for terminating the service contract, for example, due to late payment for services by the customer or a change in the market situation when the agreed cost of the service does not cover the contractor’s expenses for its provision.
You can terminate the service contract early in the following order:
- by agreement of the parties;
- due to unilateral refusal to further fulfill the contract;
- judicially.
The easiest way is to terminate the service agreement by agreement of the parties. The reason why the parties agreed to terminate the contract does not matter, the main thing is that the text of the contract does not contain a prohibition on this. Typically, an agreement to terminate a service contract is drawn up in writing and signed by both parties, but even if one of the parties does not sign it, it can show by its actions that it is fulfilling the terms of the agreement (for example, it will return the advance).
The opposite is also true - if the parties signed an agreement to terminate the contract, but at the same time continue to fulfill the contractual terms (sign certificates of acceptance of services, make new applications for their provision, make an advance), then the service contract will be considered valid.
Termination of a contract unilaterally may be motivated or unmotivated. In case of a reasoned refusal, the customer may refuse the service contract and demand compensation for losses from the contractor in the following cases:
- the contractor did not begin to provide services in a timely manner;
- during the provision of services, it becomes obvious that they will not be provided properly (and the contractor did not eliminate the deficiencies within the time period specified by the customer);
- the services were provided with significant or fatal deficiencies;
The reasons for the contractor’s refusal to provide services may be as follows:
- the customer, despite the contractor’s warning, did not replace the unsuitable or low-quality materials/equipment provided by him, necessary for the provision of the service;
- the customer did not submit technical documentation or other documents in a timely manner, due to which the contractor cannot begin to provide the service;
- the customer’s actions interfere with the execution of the service contract by the contractor (for example, they limit his access to the customer’s territory);
- the customer violates payment terms for services or repeatedly makes late payments, etc.
Facts of violation by the parties of their contractual obligations must be documented, otherwise the counterparty may appeal the unilateral refusal in court and recognize the service agreement as valid.
But each party to a service contract has the right to unmotivated (without any valid reasons) withdrawal from the contract, and she can do this at any time - before the start of the provision of services or during the provision of them. One party must notify the other of a unilateral refusal of the service agreement in writing. In this case, the customer must pay the contractor all expenses actually incurred by him up to the moment of unilateral refusal, and the contractor must fully compensate the customer for losses (if the customer can prove their existence).
To terminate a service agreement in court, you must apply to the arbitration court with a claim to declare the agreement terminated. The grounds for such a termination procedure are applicable to any type of contract, and both the customer and the contractor can go to court. It can be:
- a significant violation of the contract by the other party, due to which the party is largely deprived of what it had the right to count on when concluding the contract (for example, the contractor violated the deadline for providing the service, and its later provision is impossible for the customer);
- a significant change in the circumstances from which the parties proceeded when concluding the contract (this may be a significant increase in the cost of materials and equipment that the contractor uses when providing the service);
- other reasons provided by law or contract.
Before filing a claim in court, a party must contact the other party with a proposal to terminate the service contract and receive a refusal to do so or wait until the expiration of the period within which a response should have been received (usually 30 days, but the contract may indicate another period).
The legislative framework
Attention. The provision of most services is regulated by specialized laws and regulations.
For example:
- laws No. 323-FZ on health protection;
- No. 307-FZ on auditing activities;
- No. 126 Federal Law on communications, etc.
Government Decrees No. 1006 and 706, on paid medical and educational services, respectively, define the basic conditions that the document must contain.
The basic norms and rules governing this field of activity are given in the following regulations:
- Ch. 39 of the Civil Code of the Russian Federation regulates the requirements for drawing up an agreement for the provision of services;
- Ch. 25 of the Civil Code of the Russian Federation determines penalties for violating the terms of such an agreement;
- clause 2 art. 779 of the Civil Code of the Russian Federation indicates the types of activities that may become the subject of a contract for the provision of paid services;
- Art. 38 of the Tax Code of the Russian Federation defines a service;
- The Arbitration Code regulates relations between legal entities.
Similarities between a service contract and an employment contract
Some types of services may be similar to the labor function that the employee performs under the employment contract. These are, for example, legal, accounting, security, advertising, and marketing services.
We have already looked at the differences between an employment contract and a civil service contract. If you, as a customer, engage an individual to provide services, read our article about in what cases there is a risk of recognizing a service agreement as an employment contract, and how to avoid this.