{"id":208399,"date":"2021-07-20T19:21:52","date_gmt":"2021-07-20T06:21:52","guid":{"rendered":"https:\/\/legalvision.co.nz\/?p=208399"},"modified":"2021-08-23T18:56:20","modified_gmt":"2021-08-23T05:56:20","slug":"clauses-client-agreement","status":"publish","type":"post","link":"https:\/\/legalvision.co.nz\/commercial-contracts\/clauses-client-agreement\/","title":{"rendered":"4 Clauses to Include in a NZ Client Agreement"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">All business owners will be familiar with a client agreement. Also called a services agreement, a client agreement is a legal contract that underpins the dealings between a business and its clients. It can take various legal forms and can sometimes be implied through conduct or agreed upon verbally. The main reason businesses and clients enter into these agreements is to outline each party\u2019s rights and legally bind the <\/span><a href=\"https:\/\/legalvision.co.nz\/commercial-contracts\/terms-client-agreement\/\"><span style=\"font-weight: 400\">terms of the transaction<\/span><\/a><span style=\"font-weight: 400\">. This means that either party can be liable if they breach the agreement. However, this will only happen if the agreement includes the <\/span><a href=\"https:\/\/legalvision.co.nz\/commercial-contracts\/unfair-contract-terms-consumer-contract\/\"><span style=\"font-weight: 400\">correct terms<\/span><\/a><span style=\"font-weight: 400\">. Therefore, this article will outline three clauses you should include in your New Zealand client agreement.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">What Is a Client Agreement?<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Businesses utilise client agreements to underpin transactions with customers. Most businesses will have a standard agreement distributed and signed by the customer once they reach a deal. However, sometimes the agreement will have to be changed depending on the service you provide or the type of consumer you are dealing with. A client agreement can be formed verbally, through conduct, or you can write it. Most client agreements are formed through conduct but are affirmed by terms displayed by the business.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Scope of Services<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">The main clause you should include in your client agreement should explain the services you provide to your client. This explanation should be clear and specific. You may have a standard agreement, but this clause will need to be customised to reflect the specific service you are undertaking.\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">The scope of services can also contain the payment clause. This is how much your client must pay for your services. The payment clause should also contain how your client should make payment. For example, the payment could be made as a one-off or as instalments. You should also inform your client how you would like them to pay you. This means you might invoice your customer or expect them to pay you via internet banking before the service has been rendered.&nbsp;<\/span><\/p>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+64800005570\" class=\"not-prose\">0800 005 570<\/a> for urgent assistance.\n                <br>\n                Otherwise, complete this form, and we will contact you within one business day.\n                    <\/span>\n    <\/div>\n\n    \n\n<div class=\"not-prose flex justify-center text-left 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For example, if you are selling a service to your client, they must know that they do not own any intellectual property you are providing them. The intellectual property clause will limit what clients can do with your intellectual property. Therefore, they cannot benefit from the brand you have built. You also do not want your client bringing your brand into disrepute.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Your intellectual property clause could say that you licence your client to use your brand in certain situations. Any circumstance outside of the conditions provided will be a breach of contract, and your client will be liable. Protecting your intellectual property is vital as it can be a business\u2019 most important asset.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Right of Renewal Clause<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">If you provide continuing service to your client, your contract will stipulate how long this runs for. However, there will usually be a right of renewal clause that allows the client to renew the agreement for a fixed period of time.&nbsp;<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">The client can activate this clause as long as the business is happy to keep dealing with them. However, if the client has not upheld their obligations under the original contract, they may choose not to accept the renewal.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Termination Clause<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Another clause you should consider including in your client agreement is a termination clause. Sometimes called the cancellation clause, it allows you or the client to terminate the agreement. However, you can only do this in certain circumstances. The agreement itself will prescribe these scenarios.&nbsp;<\/span><\/p>\n\n\n\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">For example, most client agreements will stipulate that you can only use the termination clause if either party breaches the agreement.&nbsp;<\/span><\/p>\n<\/div>\n\n\n\n<p><span style=\"font-weight: 400\">It is also important to note that both parties can utilise the termination clause.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">All businesses will use a client agreement to underpin their transactions with their customers. However, the form it takes can differ depending on the business. Nevertheless, there are several key clauses that you should include in any client agreement so that your business remains protected. Without specific clauses, your business could be subject to exploitation from your client, or you could be forced to continue to contract with a client that loses you money. The principal clauses that you should include in your client agreement are the:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">scope of the services;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">an intellectual property clause;<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a right of renewal clause; and<\/span><\/li><li style=\"font-weight: 400\"><span style=\"font-weight: 400\">a termination clause.<\/span><\/li><\/ul>\n\n\n\n<p><span style=\"font-weight: 400\">If you need any legal assistance with contracts, contact <\/span><a href=\"https:\/\/legalvision.co.nz\/wellington-contract-lawyers-lp\/\"><span style=\"font-weight: 400\">LegalVision&#8217;s contract lawyers<\/span><\/a><span style=\"font-weight: 400\"> on <a href=\"tel:+64800005570\" class=\"AVANSERnumber dynamic-number\">0800 005 570<\/a> or fill out the form on this page.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1626761240461\"><strong class=\"schema-faq-question\">Can I have a verbal client agreement?<\/strong> <p class=\"schema-faq-answer\">Yes, but these are rare as it can be hard to prove what was agreed upon between the two parties.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626761261817\"><strong class=\"schema-faq-question\">Can I terminate the agreement at any time?<\/strong> <p class=\"schema-faq-answer\">No, you must meet the conditions specified in the contract otherwise, you could be in a breach of contract.\u00a0<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"ed19fd34f0\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/208399\" \/>            <input value=\"https:\/\/legalvision.co.nz\/commercial-contracts\/clauses-client-agreement\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"4 Clauses to Include in a NZ Client Agreement\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>All business owners will be familiar with a client agreement. Also called a services agreement, a client agreement is a legal contract that underpins the dealings between a business and its clients. It can take various legal forms and can sometimes be implied through conduct or agreed upon verbally. The main reason businesses and clients<a href=\"https:\/\/legalvision.co.nz\/commercial-contracts\/clauses-client-agreement\/\">Continue reading <span class=\"sr-only\">&#8220;4 Clauses to Include in a NZ Client Agreement&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13248,"featured_media":926,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[3],"tags":[25,51,643,921,941],"class_list":["post-208399","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-contracts","tag-small-business","tag-intellectual-property","tag-right-of-renewal","tag-termination-clause","tag-client-agreements"],"acf":[],"yoast_head":"<!-- This site is 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Dillon is currently studying a Bachelor of Laws and Bachelor of Commerce majoring in Finance at Victoria University of Wellington. In his spare time, Dillon enjoys watching sports and keeping up with geo-politics.","sameAs":["laini.bennett@legalvision.com.au"],"url":"https:\/\/legalvision.co.nz\/author\/dillonbalasingham\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/commercial-contracts\/clauses-client-agreement\/#faq-question-1626761240461","name":"Can I have a verbal client agreement?","acceptedAnswer":{"@type":"Answer","text":"Yes, but these are rare as it can be hard to prove what was agreed upon between the two parties.","inLanguage":"en-NZ"},"inLanguage":"en-NZ"},{"@type":"Question","@id":"https:\/\/legalvision.co.nz\/commercial-contracts\/clauses-client-agreement\/#faq-question-1626761261817","name":"Can I terminate the agreement at any time?","acceptedAnswer":{"@type":"Answer","text":"No, you must meet the conditions specified in the contract otherwise, you could be in a breach of contract.\u00a0","inLanguage":"en-NZ"},"inLanguage":"en-NZ"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/208399","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/users\/13248"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/comments?post=208399"}],"version-history":[{"count":8,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/208399\/revisions"}],"predecessor-version":[{"id":209604,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/posts\/208399\/revisions\/209604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media\/926"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/media?parent=208399"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/categories?post=208399"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.nz\/api\/wp\/v2\/tags?post=208399"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}