Creating a service agreement

Other Names: Master Service Agreement (MSA) Service Level Agreement Service Contract

What is a Service Agreement?

A Service Agreement is a legally binding contract that outlines the manner in which services will be provided. Service Agreements can be made between individuals, a business and an individual, or between two or more businesses. Having a Service Agreement in place is equally as important for service providers as for the receivers of services. The contract outlines not only what the expectations are but also how and when a provider can expect to be paid. For the service provider, the agreement provides details about the service that is expected, including when the work is to start and when it is expected to end. For the receiver, the agreement details important information about the service that will be provided, including the amount to be charged, whether or not expenses are included, and when payment is due. Service Agreements can also be helpful in scenarios where services will be provided over a long period of time. For example, service providers may schedule an annual visit to inspect your home security system. This agreement removes the need for signing a new contract each time an inspection is needed.

When to use a Service Agreement:

Your business will be providing services for a business or individual.
You will be contracting with a business to receive services.

Sample Service Agreement

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Legally binding and enforceable

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