If you are looking to rent or lease something, you may come across two common terms: service agreement and lease agreement. These legal documents are often used interchangeably, but there are some key differences between them.

Service Agreement

A service agreement is a contract between two parties where one party agrees to provide a service to the other party. The service provider agrees to perform the specified task and the client agrees to pay for the services rendered. This type of agreement is often used for professional services like consulting, marketing, or maintenance.

In a service agreement, the terms and conditions are typically very specific and detailed. They outline the scope of work, payment terms, termination clauses, and more. Service agreements are meant to protect both parties by clearly defining the expectations for the services to be provided.

Lease Agreement

A lease agreement, on the other hand, is a contract between a landlord and a tenant where the landlord agrees to rent out a property to the tenant for a specific period of time. The tenant agrees to pay rent and follow certain rules and regulations outlined in the lease agreement.

Lease agreements are common for renting apartments, houses, commercial spaces, and equipment like cars or machinery. The terms of a lease agreement typically include the rent amount, security deposit, length of lease, renewal options, and maintenance responsibilities.

Key Differences

The main difference between a service agreement and a lease agreement is the type of agreement being made. A service agreement is for the provision of a service, while a lease agreement is for the rental of a property or equipment.

Another key difference is the length of the agreement. Service agreements are often shorter and can range from a few weeks to a year, while lease agreements can be for several months or years.

The level of detail in the agreement is also different. Service agreements are highly detailed and specific, while lease agreements may have more general terms and conditions.


In summary, a service agreement is a contract for a service to be provided, while a lease agreement is a contract for the rental of property or equipment. Understanding the difference between these two types of agreements is important when considering entering into a legal contract. Always make sure to carefully review and understand the terms and conditions before signing any agreement.