What interest applies to a late payment under a service contract in California?

In California, an overdue contract payment bears interest at 10% per year from the date of breach when the contract does not set a rate (Cal. Civ. Code § 3289).

What is the difference between a service contract and an independent contractor agreement?

A service contract focuses on the services and deliverables a provider delivers to a client. An independent contractor agreement focuses on engaging an individual worker and their non-employee status. Both can be used for freelance work.

What is the difference between the Standard and Professional Service Contract?

The Standard edition is a complete, state-aware Service Contract for common situations. The Professional edition adds longer clause coverage, schedules, and optional modules for more complex matters. You can preview either edition free before you pay.

California · Standard edition

California Service Contract Template

Create a California service contract (service agreement) online. The Standard contract covers the scope of services, provider standards, client responsibilities, acceptance, change orders, fees and late payment, taxes, intellectual property, confidentiality, warranties, limitation of liability, indemnification, termination, and California rules.

Start your California Service Contract

California rules built into this template

Late payment: In California, an overdue contract payment bears interest at 10% per year from the date of breach when the contract does not set a rate (Cal. Civ. Code § 3289).
Freelance workers: California's Freelance Worker Protection Act (SB 988, effective for contracts entered into or renewed on or after January 1, 2025) requires a written contract when a freelance worker is paid $250 or more, alone or with other work for the same hiring party in a 120-day period; payment is due on the date in the contract or, if none, within 30 days after the services are completed, and the hiring party must keep the contract for at least four years. Worker classification in California is generally decided under the "ABC" test (Cal. Lab. Code § 2775) unless an exemption applies, such as the business-to-business exemption (Cal. Lab. Code § 2776).
Home sales: a consumer who signs a service contract at home may have a three-day right to cancel under the FTC Cooling-Off Rule (16 C.F.R. Part 429).

What the Service Contract includes

Services
Provider Standards
Client Responsibilities
Deliverables and Acceptance
Changes to Scope
Fees and Payment
Expenses and Taxes
Intellectual Property
Confidentiality
Warranties
Limitation of Liability
Indemnification
Term and Termination
Independent Contractor
State Law
General Provisions
Governing Law

Frequently asked questions

What interest applies to a late payment under a service contract in California?: In California, an overdue contract payment bears interest at 10% per year from the date of breach when the contract does not set a rate (Cal. Civ. Code § 3289).
What is the difference between a service contract and an independent contractor agreement?: A service contract focuses on the services and deliverables a provider delivers to a client. An independent contractor agreement focuses on engaging an individual worker and their non-employee status. Both can be used for freelance work.
What is the difference between the Standard and Professional Service Contract?: The Standard edition is a complete, state-aware Service Contract for common situations. The Professional edition adds longer clause coverage, schedules, and optional modules for more complex matters. You can preview either edition free before you pay.

Service Contract templates for other states

DraftMyDocu provides self-help document templates only. We are not a law firm and do not provide legal advice.

Start your California Service Contract