Master Services Agreement
Umbrella contract governing ongoing services, with SOWs attached for each engagement.
What it is
A Master Services Agreement (MSA) sets out the overarching legal terms between a customer and a supplier of professional services. Individual engagements are then captured in Statements of Work that incorporate the MSA by reference, saving repeat negotiation.
When you'd use one
- When engaging a vendor you expect to work with repeatedly.
- For agencies, consulting firms, and managed service providers.
- When you want stable commercial terms while still varying scope per project.
Clauses a good one has
- Services and SOW Incorporation
- Defines how Statements of Work attach to and incorporate the MSA.
- Fees and Payment Terms
- Rate card or fixed fees, invoicing cadence, and late payment handling.
- IP Ownership
- Typically work product vests in the customer on payment; the supplier retains pre-existing tools.
- Warranties and Disclaimers
- Services performed in a professional and workmanlike manner; other warranties often disclaimed.
- Limitation of Liability
- Usually capped at fees paid over the prior 12 months, with carve-outs for indemnity, confidentiality, and IP.
- Indemnification
- Supplier typically indemnifies for third-party IP infringement claims arising from deliverables.
- Termination
- For cause, for convenience (with notice), and for insolvency.
Jurisdictional variants
The same contract type looks different depending on where it will be enforced. Pick a jurisdiction to see required clauses and a worked example.
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