What is Service Contract?
A service contract is a legal agreement between an e-commerce business and the customer or a client. It exists in a document form that mentions the terms and conditions of a business’s services. It also defines the services that will be meted out to the customer along with additional information.
Importance of Service Contracts in E-commerce Shipping and Delivery
A signed service contract is essential after a customer or client agrees to do business with a provider. As a business, you need to ensure that your customer or client signs this contract to protect your interests and ensure you are not denied the payment you deserve.
How Service Contract Works and Its Prerequisites
A service contract exists to ensure that your business and customer stay on the same page regarding the previously discussed terms and conditions. Most of them have the same format that needs to have the following details:
- Contact information
- Shipping and delivery provisions
- Intellectual property
- Terms of compensation
- Warranties
- Terms of sales
Use Case With Service Contract
Let us look at a good example of using a service contract. Suppose you are starting an e-commerce website. To protect yourself from legal liability, you must prepare a service agreement outlining every detail about your service. It can include payment modes, delivery services, and terms of use.