In California, a service agreement, also called a service contract, can be found in some sales contracts and warranties. A basic warranty typically provides a consumer with general assurances of craftsmanship or quality.
A service agreement may also outline the exact services that a consumer may receive when a product fails or breaks. Services contracts can be optional or may be included as a standard feature of a warranty.
A service agreement is commonly provided when a consumer purchases a product, such as a vehicle, an appliance, an electronic item, or other items that may need regular repair or updating. The cost for services agreement benefits are usually included in the overall service price and any costs associated with the basic warranty.
These types of agreements can also be called a contract for services or service contracts, especially in the context of a vehicle purchase. If someone wants more information on service agreements in California, especially before they sign one, it is important to schedule a lawyer consultation.
What Do Service Agreements Cover?
To make it easier to understand what a service agreement covers, it can be helpful to understand what contracts have to contain. Legal contracts are agreements that are enforceable in court under contract law.
The majority of legally binding contracts are in writing and are signed. In some jurisdictions, oral agreements can also be recognized as legal contracts.
As a general rule, it is best to have any contract in writing, especially when the subject matter of the contract is a complicated arrangement or involves valuable property. Legal contracts may be used by individuals as well as including corporations and businesses.
A legal contract must be entered into in a manner that is fair to the parties involved and is free from coercion, fraud, and misrepresentations. For a contract to be legally valid in California, it must also meet all of the legal requirements under federal and California state law.
In general, legal contracts must include the following elements:
- Offer and Acceptance: One party makes an offer and the other party accepts it
- Both offer and acceptance must be done in a manner that is clear and unambiguous
- Assent: Both parties to a contract must agree, or mutually assent, to the terms of the contract
- They should be clear as to the terms and definitions that are used in the agreement
- Consideration: Each party must exchange something of value
- For example, one party is often providing services or goods in exchange for money
It is important to be aware that some types of contracts must be in writing. These include contracts for the sale of real property and contracts for the sale of goods that are worth over a certain amount, typically $500.
The terms that have to be included in a service agreement for it to be valid will depend on the products involved and the agreement itself. Service agreements can cover many different issues, including:
- Repairs
- Diagnosis and troubleshooting
- Upgrading of parts or software
- Replacement of worn parts
- Dispatching of a company service representative to conduct in-home or on-site repairs
- Access to streamlined customer service
- Refunds and returns
What Is the Difference Between a Contract Agreement and a Service Agreement?
There are some differences between contract agreements and service agreements. Service agreements are specific types of contract agreements that outline the terms of service between the service provider and the client.
Although all service agreements are contracts, not every contract is a service agreement. Contracts can be more broad and govern employment, goods, and other transactions.
A contract is a document that is legally binding and outlines the terms of an agreement between the parties involved. Although a contract can be oral or in writing, as noted above, some can only be enforced when in writing.
A sales contract is a specific contract used for the purchase and sale of consumer goods. This term usually applies to the sale of goods that are ready to be introduced into the general market.
A sales contract is typically not used to describe the sale of services. Instead, it usually involves the sale of products at wholesale prices and in wholesale quantities.
A sales contract is often used for large purchases, including businesses, vehicles, and real estate. These contracts are governed by both state contract laws as well as federal laws.
The laws that govern the sale of goods are unique, as they often address the standards of professional conduct that merchants must follow. An example of this would be a party who specializes in the sale of a specific product.
Because a merchant is expected to have more experience and knowledge than an individual who is not engaged in this business, they are held to a higher standard. The laws governing sales contracts for merchants may include exceptions in certain circumstances that are found in the Uniform Commercial Code (UCC). If there is a dispute involving the sale of goods, the UCC will govern the dispute.
What will be included in the sales contract will vary depending on what is being sold. Sales contracts can be used for a wide variety of business agreements.
To create a legally valid sales contract, the document should include several pieces of information, such as:
- The parties to the sales contract
- The type of product that is being sold
- The price and quantity of the goods being sold
- The date or dates of the sale
- Payment method
- Terms of payment
- Delivery and shipping terms, if applicable
How Are Service Agreements Created?
Contract drafting and review, including the creation of service agreements, is always best handled by a legal professional. There are many businesses that include service agreements as a standard part of the sale of their products.
When a company engages in this practice, all customers may be entitled to services if they make a purchase. In some situations, this type of service agreement may cause issues if the parties are negotiating the sales contract.
In some situations, a salesperson may spend quite a bit of time negotiating what services the customer will actually be entitled to. Once these negotiations are finished, the agreed-upon terms are included in the service agreement.
What if I Have a Legal Dispute Over a Service Agreement?
Service agreements, similar to any other provisions that are included in a contract, may result in a legal dispute. This can occur for numerous reasons, such as errors in the wording of contract terms or when a seller fails to provide services they agreed to.
A lawsuit involving a service agreement often results in an economic damages award that reimburses a non-breaching party for their monetary losses. For example, if a seller fails to complete repairs as promised under the service agreement, the seller may be ordered to reimburse the customer for any monetary losses they suffered as a result of that breach.
If an individual has any type of issue with a service agreement in California, they should reach out to a California lawyer to find out about their options and what remedies may be available to them.
Do I Need a California Lawyer for Help With Service Agreements?
Whether you are a customer or a business, a California business lawyer can help you with any concerns you have related to service agreements, including drafting, negotiating, and signing one. Service agreements are often important aspects of many businesses and transactions.
If you have any type of dispute involving a service agreement in California, your lawyer will represent you in court. Your attorney will also be able to help negotiate a solution outside of court, if you want, which can save you time and money.
Use LegalMatch’s no cost attorney matching services today conveniently from your own computer to find a lawyer in your area of California who can help resolve your service agreement issues.
