What constitutes a "service contract"?

A "service contract" is defined as an agreement where one party agrees to provide specific services to another party in exchange for compensation. This type of contract focuses on the delivery of services rather than the sale of goods.

In essence, a service contract outlines the expectations and obligations of both parties regarding the services to be performed, the timeline, and the payment structure. For example, hiring a plumber to fix a leak in your home or engaging a consultant to provide business advice are both scenarios that involve service contracts.

The other options do not fit the definition of a service contract. An agreement to sell goods pertains to the sale of physical products, while an agreement on terms of legal representation focuses specifically on the provision of legal services, which could be considered a subset of service contracts. An agreement on financial investment strategies also falls outside the definition as it relates to advice rather than services being provided. Thus, the correct choice accurately captures the essence of what constitutes a service contract.