Building strong and dependable partnerships in the business world is crucial for long-term success. However, before entering into these agreements with other companies or service providers, it is crucial to thoroughly understand all the terms and conditions if you want to ensure a mutually beneficial relationship. This is where Master Services Agreements (MSAs) come in. An MSA is a detailed contract that outlines all the terms and conditions associated with a business relationship between two parties. It serves as a foundational document for future projects or engagements, providing a framework for collaboration and allowing both parties to streamline their interactions. By eliminating the need for repetitive negotiations for each new project or engagement, MSAs save time and effort.

In the following guide, we will provide further information about Master Service Agreements and, specifically, detail the essential components software companies should include in their MSA.

What Should Be Included in the MSA

While there is no universal or standardized MSA template, these agreements typically include a variety of elements to govern the provision of services, such as scope of work, deliverables, payment terms, intellectual property rights, dispute resolution, and termination clauses.  

Below are some of the more critical sections a MSA should highlight:

Provision of Services Section

The “Provision of Services” section follows the introduction section of the MSA agreement, which contains the names, legal addresses, and official contact details of the involved parties. 

This section of the agreement will outline the specific services that will be provided under the agreement. It often includes details such as the scope of services, service levels, parties’ responsibilities, performance metrics, and any service-specific terms and conditions. 

Project and Product Management Section

In the MSA, it is imperative to explicitly state the names and roles of the individuals or teams responsible for the delivery and installation of the service or product. This section will address these issues, outline the procedure for addressing any deficiencies in the product or service, and clearly define the parties responsible for rectifying any issues that may arise.

Costs and Payment Section

This section of the MSA outlines the procedures for projecting expenses and details the process for procuring and processing payments.  It should also address the procedures for accepting provided services, including detailed provisions for the rejection of work or requests for revisions, changes, and modifications. 

Additionally, the cost and payment section will thoroughly cover aspects such as taxes, unexpected cost considerations, fees, timesheets, and remuneration details. 

Termination Terms

The Master Service Agreement will need to outline the specific duration of the partnership between the client and developer, including any provisions for renewal or extension. It will also detail the precise deadlines and timeframes for each individual project, providing a clear framework for the work to be completed. Finally, the termination section should include clauses for the premature termination of the contract, specifying the conditions under which either party can dissolve the partnership and explaining the process for contract renewal if both parties decide to continue working together beyond the duration of the initial agreement.

Miscellaneous Terms

In addition to the previously mentioned areas, the Master Service Agreement may also encompass additional miscellaneous sections deemed necessary by the organization. These additional sections may cover topics such as intellectual property rights, dispute resolution, governing laws, data protection disclosures, and any other specific terms relevant to the services provided.

Contact SaaS Today

To learn more about these agreements and what should be included in your software company’s MSA, contact SaaS Law today and review your concerns and questions with a skilled and experienced SaaS attorney.