VLP Legal Press #3
Service Agreement
When are you considered engaged to provide your service (i.e., when is a contract created)?
A Contract is created when both parties’ intentions align – that is when both say “Yes” or when a task is requested and work has commenced.
How can you be sure the contract you form is valid?
Just because the contract is formed doesn’t mean it’s always enforceable. Even if you and your client agree to work together, make sure that:
you and your customer have legal capacity to do what you have agreed; and
service and its purpose is not prohibited by the law.
Who is exactly your client?
To identify who is your client, you should confirm that the person is named as party of your service agreement.
Why should you have a written service contract? Can’t we just shake hands?
A written contract isn’t legally required — but it’s your best protection. It:
clearly records what was agreed
reduces risk of misunderstanding
is easier to prove in case of a dispute
Verbal agreements are risky:
hard to prove terms without witnesses or documents
disputes can become expensive and stressful
courts require evidence — memory alone isn’t enough
Where to go in case of dispute?
Courts – for formal legal action
Arbitration – private, faster than court but still binding
Mediation – helps both sides to agree without going to court
What should your service contract include?
Scope of Services: what exactly will you do?
Fees: How much? Is tax included? Any cancellation fees?
Payment Terms: Deposit? Payment stages? Timing? Late fees?
Deadlines & Deliverables: What are you giving, and when? What if there is delay?
Termination: Can either party cancel? For what reasons? What notice is required?
Damages & Indemnity: Can you claim loss? What proof is needed?
Insurance: Optional in Cambodia, but recommended for risky service
Legal Terms: Which country’s law applies? How will disputes be handled?
General Clauses: Waiver, amendments, and standard protections
This is for general reference only and does not constitute legal advice. For further guidance, contact us at connect@vlplaw.co .