• Master Service Agreement
• Service Level Agreement
• Vendor Agreement

1.Master Service Agreement

A Master Service Agreement is a contractual agreement in which two parties, a client and service provider, agree to terms and conditions that are to govern all transactions between them for the long-term. Contracts such as this find use in sectors that involve a large number of transactions between the provider of a service as well as a customer and may include a separate statement of work for each. The IT sector is the most common user of such an agreement.

Advantages of a Master Service Agreement

Covers 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 with a vendor/customer.

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.

2.Service Level Agreement (SLA)

A service level agreement (SLA) is a formal document between a service provider and the user. It does not define how the service will be delivered but rather provides a measurable framework for the provision of that service. Some metrics that are used to define the SLA might include the mean time between failures, an agreed accepted level of downtime across an agreed time frame, support response and resolution times.

Advantages of a Service Level Agreement

Eliminates Unrealistic Expectations

Customers are frustrated when their expectations are not met, whether or not these expectations are realistic. A comprehensive  SLA effectively manages these expectations by communicating the abilities of the service provider.

Simplifies Complex Issues

Customers don’t usually want to understand how your service works. What they want to know is how it will affect them. The SLA, therefore, describes the issues that are likely to arise, what the immediate response will be and how the matter can be resolved if the response is not satisfactory.

3.Vendor Agreement

A Vendor Agreement is an agreement stipulating the conditions under which the work is to be performed by the vendor. It is a comprehensive agreement covering various aspects such as the quality of goods supplied or service provided, duration of the contract, terms and mode of payment. Such an agreement would be useful to those hosting a large event (a trade exhibition, for example)

Advantages of a Vendor Agreement

Protects Both Parties

A well-drafted Vendor Agreement will minimise risk of future litigation, as the rights and duties of both parties are clearly laid down in the agreement.

Lays Down Procedure

The agreement can be made to specify exactly how the vendor is to work. On the other hand, the vendor may have it specify the space to be allotted, any amenities available to him and the mode of payment.