Master Service Agreement

Master Service Agreement

A Master Service Agreement is an agreement that sets out both parties' performance goals and responsibilities. It is a contract that specifies the current and prospective services to which the agreement applies. It is a contract in which most of the terms concerning future contracts and future agreements are agreed by the parties. It provides accountable structure for the services to be provided.

Contracting parties often agree that they need to enter into a long haul agreement where the merchant will provide the customer requirements by providing services that support a wide range of projects over a long period of time. The customer may not be in a position to predict every last activity that may occur, but it is sensibly certain that the services will be needed regularly. Thus, parties choose to enter into an agreement called master service agreement.

Advantages of Master Service Agreement

Various organizations use authoritative formats or they merely reorder previously used formats from one contract to another. Typically, this happens when it is necessary to move quickly. For example, a partnership opportunity may emerge suddenly or a planned customer may request for a nonstandard service surprisingly. By initiating a master service agreement, when the time is not an issue, organizations can avoid the potential problems resulting from inadequately designed contracts. MSAs, therefore, enable organizations to maintain a planned distance from binding lawsuits and reduces the risk of litigation. We surely know that the working environments, innovation in technology and markets are constantly changing, so the organizations must utilize MSAs and stay updated as necessary.

Two benefits of MSA

Simplifies criteria: A master service agreement simplifies the criteria as it describes the issues that are likely to occur in advance.

Well stated method: The agreement contains programs which are often utilized to describe the collective function of two entities. It is therefore, a well-defined way of doing a specific service.


  • A well competent attorney from our team will contact you to clarify the overall process and acknowledge the need for a Master Service Agreement.
  • Once the purposes of the Master Service agreement are apparent, the attorney shall draw up a sample Master Service Agreement appropriately.
  • The draft Master Service Agreement shall be sent to you for analysis.
  • The whole process takes between 3-4 working days.

Points to be included in a Master Service Agreement

  • Confidentiality- This segment usually obligates the seller to keep all of the client’s information and materials found in the execution of the services in order to maintain privacy and not to communicate it with third parties. If a court orders the vendor to reveal the private data, then the seller will first notify the client and allow the client to receive a request in defense from the court. Public information does not need such process.
  • Invoicing- As a contract, the master service agreement gives clarity about the time when the installment responsibility of the customer begins. The seller wants the commitment to start on the date shown in an invoice, whereas the client needs the commitment not to appear until the invoice appears.
  • Payment Terms- The payment terms are generally negotiated by the parties. The time allocation that can be debilitated by the customer before making a timely installment depends on how much dealing power a party has. Few customers also demand not to pay a receipt until six months have passed.
  • Term- Master Service Agreement shall show a term during which proclamations of service can be accomplished by the parties. The very general mistake both parties make is that they neglect the master service agreement after signing it and simply concentrates on work updates.
  • Impediment of Liability- Merchants often seek an impediment of responsibility arrangement, which reduces the customer's ability to acquire tremendous penalties and harm to the seller's amount if it wins a court verdict. Generally clients push back on this form of arrangement.

The Purpose of Master Service Agreement

Organizations use the Master Service Agreement to facilitate or rearrange the negotiations of the signed contract. An organization and its clients with a MSA operate through the majority of the wide and important tasks that could ruin an agreement upfront. By executing this ahead of time of a specific agreement, companies may concentrate more on legally binding issues, such as cost and time management when an actual deal occurs. MSAs are often mind-boggling documents, so organizations can stay away from time pressures and easily identify the problems by planning the documents in advance.

Need of a Master Service Agreement

The two main reasons why organizations use master service agreement are because they provide reimbursement and allocate risk. Reimbursement is a concept that describes a tactic in which one organization or a party is protecting the other party against a portion of any expected misfortunes. The parties who decide to reimburse any damage caused by them or any other party are recognized as the reimbursing party. They give the legal advices and handle any legitimate charges relating to the act of litigation.

The terms that are often used as part of the procedure of indemnification include protecting, withdrawing, or reimbursing. Defending describes a situation where one party hires legal counselors with a specific end goal of protecting the side at fault, releasing means that a party will not be prosecuted for damage or reimbursement alludes to charging the third party for harm. The best strategy is to hire a legal advisor and use the format of a Master Service Agreement with a specific end target to refrain from making any errors or simply marking a bad contract.