What Basic Terms Appear in a Service Level Agreement Example?

Any service level agreement sample will include certain basic terms that will help clarify what the agreement is about.

These basic terms are the following:

– Services: This term will clearly define what type of services are being sought by the customer (service recipient) from the service provider. Why is this important? This term should clearly state what the service will be and when it should be completed so that there will be no confusion later on. For example, let us say you hired a software development company to create a customized software program for your company. If the software development company has finished the project and been paid, legally the service level agreement should state that your company is now the legal and absolute owner of the new custom-made software program. If there were no service level agreement, then the software development company could find cause to file a lawsuit against you claiming that they, not you, own the rights over that software product.
– Payment: When a service has been provided, the service level agreement should have information about the agreed-upon price for the service; when and how the payment should be given by the client; any procedures to be followed for payment to be completed; breakdown of payment; invoicing system to be followed; and fees to be charged from the client when payment does not arrive on time.
– Relationship: Do not laugh, this is quite vital because it has to be clearly established from the start just what type of legal relationship exists between client and service provider.
– Ownership over the end product: This has a relationship to the example we provided above. You may be surprised how many service providers try to lay claim over the copyright and other rights over the end product, when in truth they have been satisfactorily paid by the client. A prudent client will put this clause in very explicit terms that will silence all argument.


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