A master service agreement is an agreement that is made between two parties outlining the roles and responsibilities of both the parties. It is a contract that defines the current and prospective services. Both the parties agree on the future transactions or agreements.
Some parties get into a contract with each other on a long term basis by offering services and taking care of a variety of projects.
Benefits of master service agreement
- Long-term relationship
This type of an agreement covers all aspects of the contract that are likely to arise on a long term basis. These agreements are beneficial before getting into a long term contract between the service provider and the customer.
- Simplifying criteria
The criteria followed in a master agreement are simplified as the issues that may occur earlier will be discussed beforehand.
- Time saver
Master Service agreements provide a platform to quickly negotiate with deals. If in case in the future the same deals occur then it becomes easier to negotiate on the agreements.