7.4 Primary Terms and Conditions

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In this section of the service contract the duration is confirmed. Common terms applicable to the contracting of freelance personnel are project-based terms where the contract automatically expires when the project deliverables have been met, or fixed terms, where the contract expires automatically upon expiry of the term set forth in the service agreement.

In this section the position of Party B as an independent contractor is described in detail. It is possible to write down the exact scope of service in this section directly or add the scope in the addendum to the contract. Advantage of adding the scope as an addendum to the contract is that when the scope gets altered in the future, either limited or extended, only the addendum to the contract needs to be updated whereas the remainder of the contract remains valid.

Inclusion of the provision that the service hours are to be determined based on the sole discretion of Party B further underlines the fact of the presence of a service relationship and not a employment relationship between Party A and B.

Figure 3 provides sample text included in service agreements regarding the terms and conditions.