Unlike a contract for work, a service agreement does not focus on the result but on the service to be provided by a service provider (i.e. an author or artist) to a client. Under the service agreement, the client is obliged to pay the provider the agreed remuneration (price) for the agreed service or services even if the service does not lead to the expected result. The contractual relationship based on a service agreement usually terminates when the agreement is cancelled or after its agreed term expires. The provision of services is generally a more independent and freer activity that is not subject to the client’s instructions very often.
In this regard, the service agreement differs from employment contracts which are characterised by personal and economic dependence and the obligation to comply with the employer’s instructions (further information on the distinction between a self-employed person and an employee, who is bound by the employer’s instructions, can also be found in the section Status of the Artist).