EndCode HQ

35 Ballyclare Drive

Ballyoaks Office Park

Silky Oak House   

Bryanston, Sandton 

South Africa

base@endcode.org +27 (0) 11 463 4594 | Reg No. 2014/ 118528/07 

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Can your business afford a loss?

Tech Service Agreements are all about your relationship with your clients and are an effective way to manage client expectations regarding the work or service about to be executed or delivered. A well-drafted agreement clarifies the basic terms of your relationship with your client so that the parties can prevent disagreements and confusion about the services, responsibilities, timelines, project deliverables, payment, regulatory and statutory obligations.


This agreement should be tailored to suit the particular business arrangement and becomes increasingly more important with digital services and software development.  The clear capturing of the services is needed to prevent scope creep, exclusions must be documented, recording of payment milestones, invoice stipulations and payment disputes must be addressed, easy termination provisions must enable exiting of the agreement and protection of intellectual protection must be stipulated. Your greatest investment is your innovation for the business - your intellectual property deserves to be protected.


The best of agreements must as a rule limit liability. Limiting liability to the value of the agreement is a good method, but may not always work. For start-ups though this is the best option. It is also essential that all indirect losses, consequential losses and loss of profits be expressly excluded from the agreement. This is a clause that you would want to negotiate carefully. Always consider the amount that may need to be paid, can your business afford the loss?


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