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Legally Implied Terms in an Agreement for Services

Legally Implied Terms in an Agreement for Services

Due regard needs to be given to legal issues affecting an agreement for the supply of services on a consultancy basis or contract basis.

Some terms are implied by law into such an agreement.

These include the requirements that reasonable care and skill must be used in performing the services, and that the fees charged and the time taken to do the job will be reasonable.

Between businesses, these terms can be contractually excluded but it would seem odd to specifically exclude care and skill in the supply of a service. A supplier of services is unable to exclude his liability for personal injury or death caused by his negligence. A provision excluding or limiting liability for other damage caused by his negligence or breach of contract, will not be upheld if such a provision be considered unreasonable.

It would generally be prudent to ensure that all these factors, as well as those other terms appropriate to the nature of the transaction, be expressly agreed in writing.

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