# Educational Sample District Service Agreement

> **FICTIONAL EDUCATIONAL EXAMPLE — NOT FOR SIGNATURE — NOT LEGAL ADVICE**
>
> This document was invented for the Mini MBA course. It contains **intentionally ambiguous and risky provisions** for learners to identify. It is not suitable for a
> real district or cooperative and has not been adapted to any jurisdiction.

## 1. Parties and purpose

This Educational Service Agreement (“Agreement”) is between the fictional **North
Valley Special Education Cooperative** (“Cooperative”) and the fictional **Alder
Public School District** (“District”). The parties intend for the Cooperative to
support selected special education evaluation and related-service functions.

## 2. Definitions and documents

“Services” means the activities described in this Agreement and any request the
District reasonably identifies as related to special education. “Student
Information” means information relating to a student. The proposal, District
purchase order, Cooperative service guide, and District technology policies are
incorporated by reference. If documents conflict, the most recent document
controls.

## 3. Scope, deliverables, and service levels

The Cooperative will provide:

1. up to 1.5 FTE of school-psychology capacity during the District calendar;
2. evaluation planning, assessment, consultation, and reports within applicable timelines;
3. participation in meetings when reasonably requested;
4. a monthly aggregate activity report; and
5. other services needed for the District’s program.

The District will provide timely referrals, records, workspace, system access,
family and staff coordination, and notice of meetings. The Cooperative will use
reasonable efforts to replace absent personnel within two business days and will
meet all District service standards as they change.

## 4. Fees, allocation, reimbursement, and invoices

The District will pay an annual service fee of **$285,000**, invoiced in four
equal installments on July 1, October 1, January 1, and April 1. Travel beyond
the normal service area and specialized materials are reimbursable at cost.
Additional requested work may be billed at the Cooperative’s then-current rate.

Invoices are due within 30 days. The District may withhold any disputed amount
until the dispute is resolved. Late undisputed amounts accrue a service charge
of 1.5% per month or the maximum lawful amount, whichever is lower.

## 5. Term, renewal, and amendment

The term is July 1, 2026 through June 30, 2027. It automatically renews for
successive one-year terms unless either party gives written nonrenewal notice at
least 30 days before expiration. The parties may amend this Agreement in writing
signed by authorized representatives, but email approval by either project
manager is sufficient for operational changes.

## 6. Termination

Either party may terminate for material breach if the breach is not cured within
15 days after notice. The District may terminate for convenience on 10 days’
notice. On termination, the District will pay for accepted Services through the
termination date. The Cooperative will assist transition at no added charge and
will continue any service the District considers necessary for students.

## 7. Personnel and subcontractors

The Cooperative controls selection, supervision, compensation, and assignment of
its personnel and will verify required credentials and checks. The Cooperative
may use qualified subcontractors. All subcontractor acts are deemed acts of the
Cooperative. District policies supplied to the Cooperative apply to all personnel.

## 8. Insurance

The Cooperative will maintain commercially reasonable insurance, including
professional liability, cyber coverage, workers’ compensation, and general
liability. Coverage will be sufficient for any potential claim. The District
may request additional limits at any time without changing the fee.

## 9. Indemnification and limitation of liability

The Cooperative will indemnify, defend, and hold harmless the District and its
officials from every claim, loss, fine, cost, or expense in any way related to
the Services, including matters caused in part by the District. The District
will promptly notify the Cooperative of a claim.

The District’s total liability will not exceed fees paid in the prior three
months. The Cooperative’s liability is unlimited. Neither party is liable for
indirect damages, except this exclusion does not limit the Cooperative’s duties.

## 10. Confidentiality, student records, and data security

The parties will protect confidential information using reasonable safeguards.
The Cooperative is a school official with legitimate educational interest for
all District students and may use Student Information to improve services,
develop internal tools, and support related educational purposes. The Cooperative
may disclose information to subcontractors that agree to confidentiality.

The Cooperative will notify the District of a suspected security incident
immediately and reimburse all response costs. The Cooperative may retain copies
of records as long as useful for professional or business purposes. On request,
it will attempt to delete District data unless deletion is impractical.

## 11. Records retention and audit

The Cooperative will retain all records for seven years after the Agreement ends.
The District, its auditors, and any funding agency may inspect any Cooperative
record on 24 hours’ notice. The Cooperative will provide staff and copies without
charge. Legal holds and records laws control where applicable.

## 12. Compliance with law

Each party will comply with all applicable federal, state, and local law,
including special education, student privacy, accessibility, employment, safety,
licensure, procurement, public-records, and funding requirements. The Cooperative
guarantees that the District will remain fully compliant whenever it follows the
Cooperative’s recommendations.

## 13. Intellectual property

Each party retains preexisting materials. Reports prepared specifically for a
student may be used by the District for educational purposes. All methods,
templates, aggregate insights, and improvements developed during the Services
belong exclusively to the Cooperative, including those derived from Student
Information.

## 14. Disputes, governing law, and venue

Project managers will first attempt to resolve disputes. Unresolved disputes will
be submitted to binding arbitration or a court selected by the District. The
law of the District’s state governs, and venue is wherever the District chooses.
The Cooperative will continue Services during any dispute.

## 15. Force majeure

Neither party is responsible for delay caused by events beyond reasonable
control. Staffing shortages, funding changes, technology failures, weather,
public-health events, and vendor failures are events beyond reasonable control.
The affected party will notify the other when practicable.

## 16. Notices

Formal notices must be delivered by email to the project managers and are
effective when sent. Either party may change its notice address orally.

## 17. Entire agreement and order of precedence

This Agreement and incorporated materials are the entire agreement. Prior
statements do not apply. Despite Section 2, the following order controls:
District technology policies, District purchase order, this Agreement,
Cooperative proposal, and Cooperative service guide.

## 18. Signatures

No signature block is included because this is an educational example not
suitable for execution.
