Service Agreement

A Service Agreement in Hong Kong is a legally binding contract between a service provider and a client, outlining the terms and conditions under which specific services will be provided. It ensures that both parties are aligned on the scope of work, payment structure, deliverables, responsibilities, and legal protections. This document is essential in establishing trust, preventing disputes, and protecting commercial interests.
Under Hong Kong law, a Service Agreement can cover a wide range of professional services, including marketing, accounting, financial advisory, human resources, IT services, and more. As outlined by the Department of Justice Hong Kong, such agreements are enforceable when clearly drafted and aligned with contract law principles. Also planning to formalize the sale of goods or tangible products? Download the Sales Contract to ensure your transaction terms are enforceable and clearly structured under Hong Kong law.

A properly drafted Service Agreement in Hong Kong includes several essential clauses to ensure clarity and legal protection for both parties:

These clauses help reduce risks, define obligations, and ensure enforceability under Hong Kong legal standards. Including them in your Service Agreement protects your interests and strengthens legal clarity.

Any business or individual engaging a third party to provide professional services in Hong Kong should use a Service Agreement. This includes:

Using a formal agreement minimizes miscommunication, ensures proper compensation, and reduces legal exposure for both the client and service provider.

Yes, freelancers and consultants should always use a Service Agreement when working with clients in Hong Kong. It establishes credibility and ensures mutual understanding of payment terms, scope of work, deadlines, and liability limits.

For freelancers, the agreement provides legal protection in case of non-payment or scope creep. For consultants, it helps formalize deliverables and ensures that intellectual property and confidentiality terms are clearly defined.
A Service Agreement also signals professionalism and can prevent disputes that arise from informal or verbal arrangements.

A Service Agreement can typically be terminated by either party under specific conditions outlined in the Termination clause. Common grounds for termination include:

Termination must usually be given in writing, with a standard notice period of 30 days. Immediate termination may apply in cases of gross misconduct or illegal activity. For formal dispute resolution procedures, parties may refer to the Hong Kong Judiciary’s civil procedures. Both parties should retain evidence of communication and termination grounds for legal protection.

Payment terms in a Hong Kong Service Agreement define how, when, and in what currency the service provider will be paid. Key elements include:

The Service Agreement should be clear about invoicing timelines and the time allowed for payment after the invoice is issued (14 or 30 days). This protects both parties and helps avoid misunderstandings.

Yes, depending on the industry, additional clauses may be necessary. For example:

It’s essential to customize the Service Agreement based on the service type to ensure it meets the legal and commercial standards of that specific field in Hong Kong.

If either party breaches the Service Agreement, the non-breaching party may pursue remedies such as:

The agreement should define the consequences of breach and establish clear procedures for resolving disputes. Having a well-drafted agreement increases your chances of success in court.

Absolutely. A confidentiality clause is standard in most Hong Kong Service Agreements. It ensures that sensitive business, client, and operational information is not disclosed to third parties during the contract term and for a set period after termination (commonly five years).

This clause is crucial when services involve access to proprietary systems, client data, or internal documents. A breach of confidentiality can lead to legal claims for damages or injunctions. Including this clause also reassures clients that their information is protected, in line with principles outlined by the Office of the Privacy Commissioner for Personal Data. Entering a long-term business relationship? Download the Partnership Agreement to define each party’s contributions and obligations with legal clarity and protection.

For professionals and companies operating in Hong Kong, having a legally compliant Service Agreement is essential to define obligations, protect sensitive information, and ensure enforceability in case of dispute. If you require assistance in drafting or reviewing your Service Agreement, Themis Partner provides expertly tailored contracts prepared by legal professionals. Download today your Service Agreement to secure your business operations under Hong Kong law.