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These are legal contracts between the principal and the agent, whereby the agent agrees to act on behalf of the principal who in turn agrees to be bound by the actions of the agent. The inherent power of the agent is referred to as the authority. Subsequent terms of this contract include the term of the agreement, the duties of the agent and compensation.
Service agreements are also known as contractor agreements, as they are usually between a builder, landscaper or someone who provides a service. These service agreements set out the terms and conditions of the service between customer and provider.