A Master Service Agreement is a contractual agreement in which two parties, a client and a service provider, agree to the terms and conditions that are to govern all long-term. transactions between them. 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.
Advantages of a Master Service Agreement
Covers The Entire Relationship: 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.
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 a 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.
What Are The Common Terms of a Master Service Agreement
- The common terms of MSA that extends to projects subject to the same professional service and terms which do not cover to subsequent and future transactions. There would be a separate clause for the application of common or generic terms of the agreement.
- 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.
Master Service Agreement Procedure
Requirements: Once you send in a request, our representative will get in touch with you to understand your requirements. If further details are required, we will contact you for the same. Once these are in, we will work on the request and send it to you for review within 3 to 4 working days.
Changes in Agreement: In case you would like to make any changes to the agreement, our lawyers will work on them. Two rounds of iterations are included in the original price.
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.