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This is important for two reasons. First, those agreements help the service provider in its day-to-day business of providing services and getting paid. Second, agreements that protect the service provider’s business and assets make it a more desirable target for investment or acquisition.

Businesses often use MSAs to help make contract negotiations simpler. This agreement lets both companies spend their time discussing the terms of the deal. Then, they can proceed with the work outlined in the agreement. If you don`t have an MSA, the customers and the company can still work through issues, but there are big concerns that might derail the contract. Having an MSA before having a specific contract lets companies focus on what their particular contractual issues are, such as the time frame and the price, for when the contract actually arises.

A service agreement is an agreement made by two parties that documents the agreement between them with regards to the performance of the service(s) by one party (the service provider) to the other (the principal). Service agreements are very common and can be used in a wide variety of circumstances. They set out the fundamental terms of the relationship between the principal and service provider.

You should take as much time and effort as needed to make sure that your form service agreement is as favorable to your company as possible and most accurately reflects your company’s objectives. When the form is in the right shape, all you will need to do is fill in certain blanks for each new client, after having negotiated only a limited number of contract terms. The title of the agreement can be anything you see fit, whether it be a “Service Agreement,” “Client Agreement,” “Customer Agreement,” or some other title that incorporates the name of your company.

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