A master service agreement is an agreement in which two parties agree to general terms and conditions that will apply to all future agreements between the two parties. This will make it much faster and easier to negotiate future agreements because the original terms of the agreement do not have to be renegotiated over and over again.
Master service agreements, or MSAs, typically define the general terms in a business relationship. These include: terms of payment, warranties, intellectual property ownership, dispute resolution, geographic location and choice of law. The projects themselves are then negotiated in a statement of work that builds on the terms established in the master service agreement.
A master service agreement eliminates the need to negotiate a completely new agreement for every new project. Contractual negotiations are an expensive process and an MSA establishes a framework that applies to all agreements afterward.
Also, drafting one master service agreement provides a business with a blueprint to use for other vendors. This way, a company is much more flexible in acquiring new vendors and forging new business relations.
A master service agreement should detail all the responsible issues facing both parties. What do the two parties plan to do together? What service does either side provide?
These details should include:
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