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to complete it. Use of this document is subject to the terms and conditions set out at www.kindrik.co.nz/templates.
© Kindrik Partners Limited 2020 V1.5
This is a simple supplier friendly B2B
services agreement for one-off low
value/low risk service supplies.
If the services are high value/high risk or
intended to be the subject of multiple
orders (e.g. under a statement of work
model), you should use an agreement
that has been drafted for that purpose
(e.g. more belts and braces).
using this template
The User Notes and the statements in
the footer (all marked in red) are included
to assist you to prepare this document.
They are for reference only. You should
delete all user notes and the statements
in the footer from the final form of your
document.
The use of [square brackets] around
black text means that:
the requested details need to be
inserted
there are different options for you
to consider
the whole clause is optional and
you need to consider whether to
include it, based on your
circumstances and the other
issues set out in the user notes.
Before finalising your document, check
for all square brackets to ensure you
have considered the relevant option and
deleted the brackets.
If you delete any clause or schedule,
remember to cross reference check the
document.
User notes
Template services agreement
Confidential
This template document is provided for guidance purposes only. We recommend you obtain the help of a qualified lawyer to complete it. Use of
this document is subject to the terms and conditions set out at www.kindrik.co.nz/templates.
© Kindrik Partners Limited 2020 V1.5
1
SERVICES AGREEMENT
DATE
PARTIES
1 [INSERT FULL LEGAL NAME][, company number [insert company number]] (Supplier)
2 [INSERT FULL LEGAL NAME][, company number [insert company number]] (Client)
SECTION A: AGREEMENT AND KEY DETAILS
AGREEMENT
The Supplier agrees to provide, and the Client agrees to buy, Services on the terms of the Agreement. The
Agreement comprises:
Section A (Agreement and Key Details), including this cover page and the signature clauses; and
Section B (General Terms).
KEY DETAILS [User note: This section should include all of the “job specific” details relating to the
services to be provided in sufficient detail to provide certainty to both parties.]
Item
Detail
Start date of the
Agreement
[On the date both parties sign it/[Insert date]]. [User note: The start date is
often the date of the Agreement. However, in some cases the parties
may wish to have the Agreement take effect from a future date).]
End date of the
Agreement
The later of [insert date] or the date of delivery of all of the Services. [User
note: While the Agreement will end on the date set out here, the
Agreement provides for certain clauses to continue after expiry or
termination (e.g. confidentiality and IP).]
Services
[Insert description]. [User note: To avoid any dispute as to what is
supposed to be provided, this section should set out in detail the
services to be provided and any deliverable forming part of the
services.]
Requirements
[Insert any requirement relating to the Services not covered by the general
description above or in the General Terms.]
Fees
NZD[Insert the Fees for the Services.] [User note: The fees chargeable
for the services should be set out in this section, including any cap.
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© Kindrik Partners Limited 2020 V1.5
2
E.g. if the work is T&M, the T&M rates should be included, along with
any cap. If the work is fixed price, is this to be paid in one lump sum, in
milestones or on a monthly basis? This should be set out here.]
Invoice dates
[Insert milestones/NA.] [User note: The default position in the
Agreement is that where no invoice dates are set out in this section, the
Supplier will invoice monthly in arrears.]
SIGNED [User note: Assumes two companies are entering into the Agreement. Different signature
clauses may be required for other persons.]
SIGNED for and on behalf of [INSERT FULL
LEGAL NAME] by:
Authorised signatory
Print full name
SIGNED for and on behalf of [INSERT FULL
LEGAL NAME] by:
Authorised signatory
Print full name
Confidential
This template document is provided for guidance purposes only. We recommend you obtain the help of a qualified lawyer to complete it. Use of this document is
subject to the terms and conditions set out at www.kindrik.co.nz/templates.
© Kindrik Partners Limited 2020 V1.5
3
SECTION B: GENERAL TERMS
1 INTERPRETATION
1.1 Definitions: In the Agreement, the following terms
have the stated meaning:
Agreement: Section A (Agreement and Key Details,
including the cover page and signature clauses) and
Section B (General Terms).
Confidential Information: the terms and conditions of
the Agreement and any information that is not public
knowledge and which is obtained from the other
party in the course of, or in connection with, the
Agreement. The Supplier’s Confidential Information
includes Intellectual Property owned by the Supplier.
Fees: the fees set out in the Key Details.
Force Majeure: an event that is beyond the
reasonable control of a party, excluding an event to
the extent that it could have been avoided by a party
taking reasonable steps or reasonable care.
Intellectual Property Rights: includes copyright and
all rights existing anywhere in the world conferred
under statute, common law or equity relating to
inventions (including patents), registered or
unregistered trade marks and designs, circuit
layouts, data and databases, confidential
information, know-how, and all other rights resulting
from intellectual activity. Intellectual Property has a
consistent meaning.
Key Details: the agreement specific details set out in
Section A of the Agreement.
Services: the services set out in the Key Details.
1.2 Interpretation: In the Agreement:
a clause and other headings are for ease of
reference only and do not affect the
interpretation of the Agreement;
b words in the singular include the plural and vice
versa; and
c a reference to:
i a party to the Agreement includes that
party’s permitted assigns; and
ii including and similar words do not imply
any limit.
2 OBLIGATIONS
2.1 General: In addition to the other obligations of the
Agreement:
a the Supplier must provide the Services:
i in accordance with the Agreement,
including any requirement set out in the
Key Details, and all applicable laws;
ii exercising reasonable care, skill and
diligence; and
iii using suitably skilled, experienced and
qualified staff; and
b the Client must promptly make decisions
(including approvals) and provide the Supplier
with all information reasonably required to
provide the Services.
3 WARRANTIES
3.1 General: The Supplier warrants that the Services
will, at the time they are provided, materially conform
to any requirement set out in the Key Details.
3.2 Breach of warranty: If the Services do not meet a
warranty, at the Client’s request and at the Supplier’s
cost, the Supplier must reperform the Services so
that they meet or satisfy that warranty. The
Supplier’s obligation under this clause 3.2 is the
Client’s sole remedy against the Supplier for breach
of warranty.
3.3 Exclusions:
a To the maximum extent permitted by law, the
Supplier’s warranties are limited to those stated
in clause 3.1. Any implied condition or warranty
(including any warranty under Part 3 of the New
Zealand Contract and Commercial Law Act
2017) is excluded.
b The Client agrees and represents that it is
acquiring the Services for the purposes of
trade. The parties agree that:
i to the maximum extent permissible by law,
the New Zealand Consumer Guarantees
Act 1993 does not apply to the supply of
the Services or the Agreement; and
ii it is fair and reasonable that the parties
are bound by the Agreement, including
this clause 3.3.
4 INTELLECTUAL PROPERTY [User note:
Assumes the Client will own newly created IP if
any, unless that IP incorporates existing IP or
independently developed IP. This is the standard
position taken by Clients. If the Supplier is to
own any IP created under the Agreement, this
clause will need to be modified.]
4.1 Retained Intellectual Property: The following
Intellectual Property (including any modification,
enhancement or derivative work of that Intellectual
Property) remains the property of the current owner,
regardless of its use in the Services:
a Intellectual Property that existed prior to the
date of the Agreement; and
b Intellectual Property that was developed
independently of the Agreement.
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4
4.2 Know-how: To the extent not owned by the
Supplier, the Client grants the Supplier a royalty-free,
transferable, irrevocable and perpetual licence to use
for the Supplier’s own business purposes any know-
how, techniques, ideas, methodologies, and similar
Intellectual Property used by the Supplier in the
provision of the Services.
4.3 Ownership going forward:
a Subject to clauses 4.1 and 4.2, all new
Intellectual Property created or developed by
the Supplier in providing the Services, is owned
by the Client on payment in full of all of the
Fees relating to those Services.
b If new Intellectual Property described in clause
4.3a incorporates Supplier Intellectual Property
or any third party material, the Supplier grants
or must obtain for the Client an irrevocable,
perpetual, non-transferable and fully paid
licence to use that Intellectual Property or third
party material within New Zealand for the
Client’s internal business purposes.
5 FEES
5.1 Fees: The Client must pay the Fees to the Supplier
for providing the Services.
5.2 Invoicing:
a The Supplier must provide the Client with valid
GST tax invoices on the dates set out in the
Key Details, or if there are none, monthly for
Services undertaken in the previous month.
b The Fees exclude GST, which the Client must
pay on taxable supplies under the Agreement.
c The Client must pay the Supplier’s invoice:
i by the 20
th
of the month following the date
of invoice; and
ii electronically in cleared funds without any
set off or deduction.
5.3 Overdue amounts: The Supplier may charge
interest on overdue amounts. Interest will be
calculated from the due date to the date of payment
(both inclusive) at an annual percentage rate equal
to the corporate overdraft reference rate (monthly
charging cycle) applied by the Supplier’s primary
trading bank as at the due date (or if the Supplier’s
primary trading bank ceases to quote such a rate,
then the rate which in the opinion of the bank is
equivalent to that rate in respect of similar overdraft
accommodation expressed as a percentage) plus 2%
per annum.
6 CONFIDENTIALITY
6.1 Security: Each party agrees that, unless it has the
prior written consent of the other party, it will:
a keep confidential at all times the Confidential
Information of the other party; and
b ensure that any personnel or professional
advisor to whom a party discloses the other
party’s Confidential Information is aware of, and
complies with, this clause 6.1.
6.2 Disclosure required: The obligations of
confidentiality in clause 6.1 do not apply to any
disclosure:
a for the purpose of performing the Agreement or
exercising a party’s rights under the Agreement;
b required by law (including under the rules of
any stock exchange);
c of Confidential Information which:
i is publicly available through no fault of the
recipient of the Confidential Information or
its personnel; or
ii was rightfully received from a third party
without restriction and without breach of
any obligation of confidentiality; or
d by the Supplier if required as part of a bona fide
sale of its business (assets or shares, whether
in whole or in part) to a third party, provided that
the Supplier enters into a confidentiality
agreement with the third party on terms no less
restrictive than this clause 6.
6.3 Return of information: Except to the extent that a
party has ongoing rights to use Confidential
Information, a party must, at the request of the other
party following the expiry or termination of the
Agreement, promptly return to the other party or
destroy all Confidential Information of the other party
in the recipient party’s possession or control.
7 LIABILITY
7.1 Maximum liability: The maximum aggregate liability
of the Supplier under or in connection with the
Agreement, whether in contract, tort (including
negligence), breach of statutory duty or otherwise,
must not exceed the Fees paid and/or payable by the
Client under the Agreement for Services properly
provided in accordance with the Agreement.
7.2 Unrecoverable loss: Except for the Client’s liability
to pay the Fees, neither party is liable to the other
under or in connection with the Agreement for any
loss of profit, data, savings, business, revenue,
and/or goodwill, or any indirect, consequential,
incidental or special loss or damage of any kind.
7.3 Unlimited liability:
a Clauses 7.1 and 7.2 do not apply to limit the
Supplier’s liability for:
i personal injury or death;
ii fraud or wilful misconduct; or
iii breach of clause 6.
Confidential
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5
b Clause 7.2 does not apply to limit the Client’s
liability for those matters stated in clauses 7.3ai
to 7.3aiii.
7.4 No liability for the other’s failure: Neither party will
be responsible, liable, or held to be in breach of the
Agreement for any failure to perform its obligations
under the Agreement or otherwise, to the extent the
failure is directly caused by the other party failing to
comply with its obligations under the Agreement, or
by the negligence or misconduct of the other party or
its personnel.
7.5 Mitigation: Each party must take reasonable steps
to mitigate any loss or damage, cost or expense it
may suffer or incur arising out of anything done or
not done by the other party under or in connection
with the Agreement.
8 TERM AND TERMINATION
8.1 Duration: Unless terminated under this clause 8,
the Agreement starts and ends on the dates set out
in the Key Details.
8.2 [No fault termination: Either party may terminate
the Agreement on no less than one month’s prior
notice to the other party.] [User note: Include this
clause 8.2 where it would be useful to terminate
the agreement at will. If this clause is retained,
the following clause should be titled “Other
termination rights”.]
8.3 [Other t][T]ermination rights: Either party may, by
notice to the other party, immediately terminate the
Agreement if the other party:
a breaches any material provision of the
Agreement and the breach is not:
i remedied within 10 days of the receipt of
the notice from the first party requiring it to
remedy the breach; or
ii capable of being remedied;
b has an administrator, receiver, liquidator,
statutory manager, mortgagee’s or chargee’s
agent appointed, becomes subject to any form
of external administration, or ceases to continue
business for any reason; or
c is unable to perform a material obligation under
the Agreement for 30 days or more due to
Force Majeure.
8.4 Consequences of expiry or termination:
a Expiry or termination of the Agreement does not
affect each party’s rights and obligations
accrued before the expiry or termination date.
b The Client must pay for Services provided
before the expiry or termination date.
8.5 Obligations continuing: Clauses which, by their
nature are intended to survive expiry or termination,
including clauses 6, 7 and 8, continue in force.
9 DISPUTES
9.1 Good faith negotiations: Before taking any court
action, a party must use best efforts to resolve any
dispute under, or in connection with, the Agreement
through good faith negotiations.
9.2 Obligations continue: Each party must, to the
extent possible, continue to perform its obligations
under the Agreement even if there is a dispute.
9.3 Right to seek relief: This clause 9 does not affect
either party’s right to seek urgent interlocutory and/or
injunctive relief.
10 GENERAL PROVISIONS
10.1 Force Majeure: Neither party is liable to the other
for any failure to perform its obligations under the
Agreement to the extent caused by Force Majeure,
provided that the affected party:
a immediately notifies the other party and
provides full information about the Force
Majeure;
b uses best endeavours to overcome the Force
Majeure; and
c continues to perform its obligations as far as
practicable.
10.2 Waiver: To waive a right under the Agreement, that
waiver must be in writing and signed by the waiving
party.
10.3 Independent contractor: The Supplier is an
independent contractor of the Client. No other
relationship (e.g. joint venture, agency, trust or
partnership) exists under the Agreement.
10.4 Notices: A notice given by a party under the
Agreement must be delivered via email to an email
address notified by the other party for this purpose.
If the notice is given under clause 8, a copy of that
email must be immediately delivered (by hand or
courier) to the Chief Executive or equivalent officer of
the other party at the other party’s last known
physical address.
10.5 Severability: Any illegality, unenforceability or
invalidity of a provision of the Agreement does not
affect the legality, enforceability or validity of the
remaining provisions of the Agreement.
10.6 Variation: Any variation to the Agreement must be
in writing and signed by both parties.
10.7 Entire Agreement: The Agreement sets out
everything agreed by the parties relating to the
Services and supersedes and cancels anything
discussed, exchanged or agreed prior to the
Agreement’s start. The parties have not relied on
any representation, warranty or agreement relating to
the subject matter of the Agreement that is not
expressly set out in the Agreement, and no such
representation, warranty or agreement has any effect
from the Agreement’s start. Without limiting the
previous sentence, the parties agree to contract out
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© Kindrik Partners Limited 2020 V1.5
6
of sections 9, 12A, and13 of the Fair Trading Act
1986, and it is fair and reasonable that the parties
are bound by this clause 10.7.
10.8 Subcontracting and assignment: Neither party
may assign, subcontract or transfer any right or
obligation under the Agreement without the prior
written approval of the other (not to be unreasonably
withheld). The first party remains liable for its
obligations under the Agreement despite any
approved assignment, subcontracting, or transfer.
10.9 Law: The Agreement is governed by, and must be
interpreted in accordance with, the laws of New
Zealand. Each party submits to the non-exclusive
jurisdiction of the Courts of New Zealand in relation
to any dispute connected with the Agreement.
10.10 Counterparts: The Agreement may be signed in
counterparts, each of which constitutes an original
and all of which constitute the same agreement. A
party may enter the Agreement by signing and
sending (including by email) a counterpart copy to
the other party.