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Master Service Agreement

A Master Service Agreement is a contractual agreement in which two parties, a client and service provider, agree to terms and conditions that are to govern all transactions between them for the long-term. Contracts such as this find use in sectors that involve a large number of transactions between the provider of a service as well as a customer and may include a separate statement of work for each. The IT sector is the most common user of such an agreement.

The Master Service Agreement covers the entire relationship between service provider and customer, covering all aspects of the contract that are likely to arise. Such an agreement is beneficial to have in place before starting a long-term relationship with a vendor/customer.It provides a framework to quickly negotiate agreements. Therefore, the same terms need not be repetitively negotiated for deals that are very similar to each other.

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