Master Service Agreement

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All You Need to Know About Starting a Company

What is a Master Service Agreement?

A master service agreement is a contract agreement between two parties, a client and service provider who agree to terms and conditions that will administer all transactions between them in future. These types of contracts are mainly used in sectors that involve large number of transactions between service provider and customer. A separate statement of work will be included for both parties. The master service agreement is most commonly used in IT sector. An MSA may cover the following terms:-Payment terms, Product warranties, business ethics, Intellectual property ownership, Dispute resolution etc.

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Advantages of a Master Service Agreement

Coverage of complete journey

The complete relationship between service provider and customer will be covered by MSA. It will cover all types of situations that are likely to arise. This type of agreement is valuable to have in place before starting a long-term relationship with a vendor or a customer.

Time Saving

The MSA will provide a framework to quickly negotiate agreements. So, we do not have to renegotiate the same situationsagain and again. In this way, it saves a lot of time for both of parties.