A contract that is agreed upon between two parties that legally defines the relationship, terms, ownership of intellectual property, and other details associated with the engagement. Generally, a master services agreement provides expectations on what each party must do to honor their side of the agreement. The goal of a master services agreement is to make the contract process faster and simplify future contract processes.
Purpose and Scope
A master service agreement (MSA) is a contract reached between parties, in which the parties agree to most of the terms that will govern future transactions or future agreements. It delineates a schedule of lower-level service agreements, permitting the parties to quickly enact future transactions or agreements, negotiating only the points specific to the new transactions and relying on the provisions in the master agreement for common terms.
- Reference point: This master agreement can be used to mediate employer-employee conflict in the workplace by having a reference point to work out solutions and set specific terms.
- Unified contract: Contracts are often negotiated as a unified master service agreement and statement of work, such as with information technology service providers.
Components
- Relationship: Defines the legal relationship between the parties.
- Terms: Outlines the terms and conditions under which the services will be provided.
- Intellectual property: Specifies ownership of intellectual property created during the engagement.
- Expectations: Provides expectations on what each party must do to honor their side of the agreement.
Benefits
- Faster process: The goal of a master services agreement is to make the contract process faster.
- Simplified future contracts: Simplifies future contract processes by establishing common terms upfront.
