Definition of Service Provision

Save

A service provision has more than one definition, depending on the context in which you use the term. In a business context, it usually refers to trading an intangible resource, such as a skill or specialized knowledge, for some form of compensation.

In-house Service Provisions

  • Anything a business sells that doesn’t have physical properties is a service provision. Merchandise assembly services, a body massage, an aerobics class and expert advice, given either in-person or over the telephone, are all examples of service provisions as long as they come with an associated charge.

Contractual Service Provisions

  • Service provisions can be part of a contractual agreement. In this context, a business agrees to provide certain services, such as lawn mowing or snow plowing, as long as the customer agrees to the payment terms outlined in the contract. Once both parties sign the agreement, service provisions become a legal responsibility.

References

  • Photo Credit Image Source/Photodisc/Getty Images
Promoted By Zergnet

Comments

You May Also Like

  • What Is a Call Provision?

    Call provisions give the issuers of bonds, preferred stock and other issuers the right but not the responsibility to redeem a security...

  • What Is the Difference Between a Clause and a Provision?

    The difference between the terms "clause" and "provision" can be confusing. Each term has more than one meaning, and legal writers sometimes...

  • Definition of Employee Services

    As the need for companies to provide employee benefits and retain quality personnel within their organization has increased, so too has the...

  • What Is a Constitutional Provision?

    A constitution is the foundational law in most countries, including the United States. The term "constitutional provision" specifies that a rule or...

  • Definition of Provision in Accounting

    Accounting rules require a company to review its operating data periodically and ensure that loans and customer receivable amounts are accurate. These...

  • Provision Expense Definition

    Financial institutions such as banks, insurance firms, hedge funds or brokerages record provision expenses in their accounting ledgers to reflect the possibility...

  • Definition of a Statutory Provision

    When a state or federal legislature passes a law, it becomes known as a statute. Some statutes direct an act, such as...

  • What Is Leisure Provision?

    "Leisure provision" usually refers to those industries and people who provide leisure for general consumption, although it is a term also sometimes...

  • What is a Contract Provision?

    A contract is really nothing more than the sum of its provisions, which are the who, what, where, when and how of...

  • Provision of Information

    The provision of information is an essential element of the functioning of any society or community. Without a means to provide facts...

  • How to Improve a Service Provision

    Changes in service provisions bridge the gap between companies and their customers. Health care facilities, banking institutions and legal firms implement service...

  • Difference Between Reserve & Provision in Accounts

    The central purpose of most businesses is to earn a profit for services rendered. Profit is calculated by subtracting incurred expenses from...

Related Searches

Check It Out

Are You Really Getting A Deal From Discount Stores?

M
Is DIY in your DNA? Become part of our maker community.
Submit Your Work!