A service contract is a contract that specifically defines a service provided by one entity and the payment provided by another entity. When you work with a contractor or as a contractor, protection is required. Even an entrepreneur with a good reputation can fail. If things go wrong, a service contract serves as protection for both parties. Written service agreements are generally more necessary when contractual terms become more complex or need to be clarified. The ownership of the address of the materials. The best practice is to determine which party retains ownership rights to materials manufactured during the employment contract. The rights may be retained by the service provider or exclusively granted to the client according to the contractual agreement.