Â Çontract undertaken by a person for provision of a service (i.e an intangible output) and is solely responsible for the satisfactory completion of the service.
A contract for service is generally taken by a self employed person, and that person may in turn employ other people to carry out the service. In a contract for service, there is typically no employer-employee relationship between the two parties involved.
For example, a contract for service may be – a contract between a firm and a vendor for supply of tea and refreshments in the staff canteen for a period of one year.
Some of the key elements which are covered in the contract include:
• Description of service to be provided
• Terms of payment
• Confidentiality if any
• Provision for modification