Service Contracts are used when the time, effort and/or expertise of a person or business are engaged by a business or individual. These include the services of a contractor, consultant or agent which may be on an ongoing or one-off basis. For example, you can use a contractor agreement for a graphic artist to design a logo for your company. A well-drafted contract that represents the terms and conditions, obligations and expectations of both parties can avoid misunderstandings and provide an essential tool to build business relationships.