Master Service Agreement Overview & Template

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Lasya Pamidi

Business contracts
Legal
Master Service Agreement
MSA
Last updated on April 30th, 2021

What is a Master Service Agreement?

A master service agreement is an agreement which specifies performance objectives and outlines the responsibilities of both parties. Furthermore, this contractual document lists the current and prospective services to which the agreement applies. It is a contract in which the parties agree to most of the terms that will govern future transactions or future agreements. It provides accountable framework for the services to be provided. Contracts such as these are useful in sectors that involve a large number of transactions between the provider of service as well as a customer and may include a separate statement of work for each.

Applicable Law

The principles of contract under Contract Act, 1872 would govern these agreements. Further, the Consumer Protection Act, 1986, also applies to all goods and services, excluding goods for resale or for commercial purpose and services rendered free of charge and under a contract for personal service. It protects rights of customers such as right to be informed, right to safety etc.

Goods and Services Tax (GST) is applicable on supply of services at different rates for different categories of services other than a few services which are exempt.

Advantages of Master Service Agreement

Key Contents in a Master Service Agreement

Master Service Level Agreement Template
Download Master Service Level agreement for your Company when onboarding service providers
Download
Master Service Level Agreement Template
Download Master Service Level agreement for your Company when onboarding service providers
Download

FAQs

What is the difference between a MSA and SLA?

A Master Service Agreement (or MSA) is a typical contract between two parties that lists out the terms that govern all of their future transactions or future agreements. On the other hand, a Service Level Agreement (SLA) is an agreement specifically between the service provider and a client / a service user.

What Is The Purpose Of MSA?

The MSA is a base agreement through which every future contract between the parties will be guided.

What if one party to the agreement does not deliver the services promised

A MSA is like any other contract. You can exercise your legal rights and take legal action on the other party.

Got Questions? Ask Away!

  1. Hey @HarshitShah

    Yes. Any time the terms of the agreement change, this should be documented in a new contract. The new contract should also make clear this contract replaces the old contract.