Master Service Agreement

What is a Master Service Agreement?

A Master Service Agreement (MSA), also referred to as an MSA contract or MSA agreement, is a legal document outlining the terms and conditions between two parties intending to work together on a continual basis. This agreement lays out broad terms for future transactions or agreements, reducing the likelihood of future disputes.

When You'll Need This Document

You'll require a Master Service Agreement when you anticipate entering into multiple contracts with another party over a certain period. For example, a software development firm may use an MSA to define the terms of work with a client for multiple projects throughout the year. The MSA contract establishes the rules of engagement, saving time on negotiations per project.

Who Benefits from This Form?

Both service providers and clients can benefit from an MSA. Service providers get a clear understanding of expectations, responsibilities, and payment terms, while clients get transparency about service quality, project timelines, and costs. Subsequently, the Master Service Agreement contract fosters better relationships between parties and expedites future agreements.

Legal Protection Offered

Master Service Agreements offer legal protection by defining the obligations, responsibilities, and liabilities of each party. They include clauses for indemnity, warranty, and liability, providing a safety net in case of disputes. Having a well-drafted MSA agreement in place can help avoid expensive legal battles.

Common Use Cases

• A marketing agency and a corporation agreeing on the terms of ongoing promotional campaigns
• A software development company and a start-up defining the scope of an app development project
• A freelance consultant and a client setting the parameters for long-term consulting services

FAQs