Master Service Agreement - An Overview
A master service agreement is a contract between two parties, a customer and a service provider, that specifies the terms and conditions that will apply to all long-term transactions between them. Contracts like these are important in industries where there are a lot of transactions between the service provider and the customer, and each one may have its own statement of work.
Benefits of a Master Service Agreement
Covers the Entire Relationship
The MSA document covers the entire relationship between service provider and customer, covering all aspects of the contract that are likely to arise. Such an MSA document is beneficial to have in place before starting a long-term relationship.
Saves Time
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.
Checklist of Master Service Agreement
- The terms of the contract must be futuristic with the view of issues encountered by parties
- The functions and duties of the first party company
- The functions and duties of the second party company.
Common Terms of a MSA Contract
- MSA contract standard terms that apply to all projects that require the same professional service, as well as clauses that do not apply to subsequent or future transactions. There would be a separate clause in the MSA contract for the application of the agreement's common or generic terminology
- Dispute or arbitration clause; the seat of arbitration, venue of arbitration, and laws governing the arbitration
- Intellectual property rights; this part of the contract deals with the intellectual properties created or arose out of the business transaction
- Confidentiality term; this a widely used term of the contract especially by the data processing companies
- Indemnity; the major clause of any contract which is most commonly used to sue the other party and third party sue the parties to contract for compensation
- The way by which a particular condition or term will be performed
- The benchmark for the service rendered or products delivered
- The consequences of the breach of contract or non-compliance of terms
- Handling of the employee and soliciting their clients
- Warranty and guarantee
- Mode of payment of fees and other professional charges.
Who Provides the Master Service Agreement
The Master Service Agreement or MSA is an agreement between the service provider and the customer that sets out the terms and conditions of the services to be provided. The MSA will identify the services to be provided, the responsibilities of each party, the fees to be paid, and any other relevant details. The service provider typically drafts the MSA and provides it to the customer for review and signature. The customer can then negotiate any changes with the service provider before signing the agreement.
What Are the Types of MSA Agreement
There are three types of MSA Agreement in India, which are:
- IT MSA: This type of MSA Agreement is between an organisation and an IT service provider for the provision of IT services.
- Business MSA: This type of agreement is between two businesses for the provision of goods and/or services.
- Employment MSA: This type of agreement is between an employer and an employee, for the provision of employment services.
What Is the Difference Between SLA and MSA
A service level agreement (SLA) is a contract between a service provider and a customer that specifies the services to be provided, the quality levels to be met, and other performance-related issues.
A management services agreement (MSA) is a contract between a company and an outside service provider for the provision of management services. The MSA will spell out the specific responsibilities of the service provider, as well as the terms and conditions under which the services will be provided.
Master Service Agreement Procedure
- Step 1: Once you send in a request, one of our experts will get in touch with you to understand your requirements
- Step 2: If further details are required, we will contact you for the same
- Step 3: Once these are in, we will work on the request and send it to you for review within 3 to 4 working days.
Note: Our attorneys Will work on any adjustments you would like to see on the msa agreement. The initial cost includes two cycles of iteration.
Documents Required to Register a Master Service Agreement
- Government ID proof with photo
- Incorporation certificate
- Address proof
- The financial statement of both companies for the past financial year.
Why Vakilsearch?
- We execute legal work for over 1000 companies every month by leveraging our tech capabilities and the expertise of our team of legal professionals
- We ensure a seamless interactive process with the government
- Your original price includes two rounds of iterations
- Come on board and experience the ease and convenience with us
- If you need any changes done to the agreement, our lawyers will do the needful and send it across to you for your view once again.
