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Legal MSLA Document

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MASTER SERVICES AND LICENSE AGREEMENT (MSLA)

This Master Services and License Agreement ("Agreement") is entered into as of Effective Date: by and between Client Name: (an entity organized as Corporation LLC Other) and Provider Name: (an entity organized as Corporation LLC Other).

RECITALS

WHEREAS, Provider develops, licenses and operates certain software, systems, and services and offers ongoing support, maintenance and hosting in connection therewith; and

WHEREAS, Client desires to obtain, and Provider desires to grant, a license to use the software and to provide the services, each on the terms and conditions set forth in this Agreement; and

WHEREAS, the parties intend that this Agreement govern the provision of recurring services, associated service levels, fees, and any software license granted by Provider to Client.

NOW, THEREFORE, in consideration of the mutual promises contained herein, the parties agree as follows:

1. DEFINITIONS

1.1 "Affiliate" means an entity that directly or indirectly controls, is controlled by, or is under common control with a party. Control means ownership of fifty percent (50%) or more of the voting power.

1.2 "Services" means the hosting, maintenance, support, and professional services described in Schedule A and any Statements of Work executed under this Agreement.

1.3 "Software" means Provider's proprietary software made available to Client pursuant to this Agreement and any associated documentation and updates.

2. LICENSE GRANT AND RESTRICTIONS

2.1 License Grant. Subject to the terms and conditions of this Agreement and payment of all fees, Provider hereby grants Client a non-exclusive, non-transferable, non-sublicensable license to access and use the Software and Documentation during the Term solely for Client's internal business purposes.

2.2 Restrictions. Client shall not: (a) copy, modify, or create derivative works of the Software except as expressly authorized; (b) sublicense, sell, rent, lease, or distribute the Software to third parties; (c) reverse engineer or attempt to derive the source code; or (d) remove proprietary notices.

3. SERVICES AND SERVICE LEVELS

3.1 Services. Provider shall perform the Services described in Schedule A in a professional and workmanlike manner consistent with industry standards.

3.2 Service Levels. Provider will use commercially reasonable efforts to achieve an availability target of % measured monthly. If Provider fails to meet the availability target for a given month, Client may request a service credit equal to % of the monthly fee, subject to the limitations and exceptions set forth herein.

3.3 Measurement and Remedies. Service credits are Client's sole and exclusive remedy for any failure to meet the service levels. To receive a credit, Client must submit a written claim to Provider within days of the end of the month in which the failure occurred, specifying metrics and supporting logs.

4. FEES AND PAYMENT

4.1 Fees. Client shall pay Provider the fees set forth in the applicable Statement of Work or Schedule. Initial setup fee: . Recurring fee: per .

4.2 Payment Terms. Unless otherwise stated, invoices are due within days of invoice. Late payments accrue interest at the lesser of 1.5% per month or the maximum permitted by law.

5. TERM AND TERMINATION

5.1 Term. The initial term of this Agreement shall be for a period of months from the Effective Date (the "Initial Term"), and shall automatically renew for successive periods of months unless either party provides written notice of non-renewal at least days prior to the end of the then-current term.

5.2 Termination for Cause. Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure such breach within days after written notice.

5.3 Effect of Termination. Upon termination, Client shall cease use of the Software and Services, return or destroy Provider Confidential Information, and pay all accrued fees through the effective date of termination. Sections concerning Confidentiality, Intellectual Property, Indemnification, Limitation of Liability, and Survival shall survive termination.

6. CONFIDENTIALITY

6.1 Confidential Information. "Confidential Information" means non-public information disclosed by a party that is designated confidential or that reasonably should be understood to be confidential. Confidential Information does not include information that is or becomes publicly known through no breach, is rightfully received from a third party without restriction, or is independently developed.

6.2 Obligations. Receiving party shall (a) protect Confidential Information with at least the same degree of care it uses to protect its own confidential information, (b) use Confidential Information solely to perform its obligations or exercise rights under this Agreement, and (c) limit disclosure to employees, contractors, or advisors who have a need to know and are bound by confidentiality obligations.

6.3 Compelled Disclosure. If a receiving party is compelled to disclose Confidential Information by law or order of a court or governmental authority, it shall give the disclosing party prompt notice where legally permitted and cooperate to seek protective measures.

7. INTELLECTUAL PROPERTY

7.1 Ownership. Provider retains all right, title and interest in and to the Software, Documentation, and improvements thereto. Client retains all right, title and interest in and to Client Data and any intellectual property owned or provided by Client.

7.2 License to Client Data. Client grants Provider a non-exclusive, limited right to use, copy, transmit, and display Client Data as necessary to provide the Services, to perform backups, and to comply with the Agreement.

8. WARRANTIES; DISCLAIMER

8.1 Limited Warranty. Provider warrants that it will provide Services in a professional and workmanlike manner consistent with prevailing industry standards. Provider's sole obligation for breach of this warranty shall be to re-perform the deficient services or, if Provider cannot cure, to refund the fees paid for the deficient portion of Services.

8.2 Disclaimer. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS AGREEMENT, PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, AND NON-INFRINGEMENT.

9. INDEMNIFICATION

9.1 Provider Indemnity. Provider shall defend, indemnify and hold Client harmless from and against any third-party claim alleging that the Software as delivered infringes any issued U.S. patent, copyright, or trade secret, provided Client promptly notifies Provider, gives control of the defense to Provider, and reasonably cooperates. Provider's obligations do not apply to infringements arising from Client Data, third-party products, or Client's unauthorized modifications.

9.2 Client Indemnity. Client shall defend, indemnify and hold Provider harmless from and against any third-party claim arising from Client Data, Client's use of the Software in violation of this Agreement, or Client's gross negligence or willful misconduct.

10. LIMITATION OF LIABILITY

10.1 Exclusion of Damages. EXCEPT FOR LIABILITY ARISING FROM A PARTY'S GROSS NEGLIGENCE, WILLFUL MISCONDUCT, OR INDEMNIFICATION OBLIGATIONS, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY CONSEQUENTIAL, INCIDENTAL, EXEMPLARY, OR PUNITIVE DAMAGES, LOST PROFITS, OR LOSS OF BUSINESS.

10.2 Liability Cap. EXCEPT FOR LIABILITY ARISING FROM A PARTY'S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, THE AGGREGATE LIABILITY OF EACH PARTY FOR ANY AND ALL CLAIMS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT SHALL NOT EXCEED THE TOTAL AMOUNTS PAID OR PAYABLE BY CLIENT TO PROVIDER UNDER THIS AGREEMENT DURING THE PRIOR MONTHS.

11. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered to the addresses below by certified mail, courier, or email (with confirmation):

12. AMENDMENTS, WAIVER, COUNTERPARTS

12.1 Amendments. No amendment or modification of this Agreement shall be effective unless in writing and signed by authorized representatives of both parties.

12.2 Waiver. The failure of either party to enforce any right shall not constitute a waiver of that right in the future unless the waiver is in writing and signed by the waiving party.

12.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument. Signatures transmitted by electronic means shall be effective as originals.

13. GOVERNING LAW; SEVERABILITY; ENTIRE AGREEMENT

13.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of without regard to conflict of laws principles.

13.2 Severability. If any provision of this Agreement is held invalid or unenforceable, the remaining provisions shall remain in full force and effect and the parties shall negotiate in good faith a substitute provision.

13.3 Entire Agreement. This Agreement, together with all Schedules and Statements of Work executed hereunder, constitutes the entire agreement between the parties with respect to the subject matter and supersedes all prior agreements and understandings.

SCHEDULE A — DESCRIPTION OF SERVICES

Client Printed Name:

By:

Date:

Provider Printed Name:

By:

Date:

Enter text✕

What the Legal MSLA Document Is

A Legal MSLA Document is a Master Services and License Agreement that records the rights and obligations between a licensor and a licensee for services, software, or intellectual property. It defines scope of services, license grants, service levels, fees, term and termination, liability limits, confidentiality, data protection, warranties, and dispute resolution. The MSLA typically attaches exhibits such as statements of work, pricing schedules, and technical specifications to make performance measurable and to allocate risk clearly between parties for the business relationship.

Why a Solid MSLA Matters for Commercial Relationships

A clear Legal MSLA reduces ambiguity by documenting service levels, licensing scope, payment terms, and remedies, which limits disputes and supports operational planning and regulatory compliance.

Why a Solid MSLA Matters for Commercial Relationships

Who Prepares and Relies on a Legal MSLA

Companies and legal teams use the Legal MSLA Document to align commercial, licensing, and operational obligations across departments before executing projects.

  • Software vendors and licensors managing license grants and distribution and compliance
  • Service providers defining SLAs, maintenance obligations, and escalation procedures for clients
  • In-house counsel and contract managers reviewing liability, indemnity, and termination clauses

Accurate completion reduces negotiation time and ensures operational teams understand deliverables and billing expectations upfront.

Who Signs and Who Manages the Document

COO / Operations

Responsible for implementing service levels and coordinating internal teams; reviews SOWs, schedules, and operational KPIs. Ensures performance metrics align with contractual SLAs and confirms resource allocation for timely delivery during the MSLA term.

General Counsel

Drafts and approves legal terms including liability caps, indemnities, intellectual property assignments, and data protection clauses. Advises on regulatory compliance such as the ESIGN Act (15 U.S.C. ch. 96) and UETA and coordinates external counsel when state-specific law raises issues.

Core Sections to Include in Every Legal MSLA Document

A professional MSLA groups commercial, technical, and legal terms so each party clearly understands obligations, remedies, and handoff points across the contract lifecycle.

Scope of License

Describe the exact rights granted (use, distribution, sublicensing), permitted users, limits on copies or instances, and any territory or channel restrictions to avoid post‑execution disputes over usage.

Service Levels

Specify measurable SLAs (uptime, response time, mean time to repair), measurement windows, reporting cadence, and remedies such as credits or termination rights tied to repeated failures.

Payment Terms

State fees, billing schedule, invoice disputes process, accepted payment methods, late fees or interest, and any conditions for withholding payment during disputed periods to reduce cash‑flow surprises.

Confidentiality

Define confidential information, permitted disclosures, duration of obligations, return or destruction procedures, and carve-outs for required disclosures to comply with law.

Liability & Indemnity

Include caps on damages, exclusions for consequential damages where permitted, indemnity scope for IP infringement and third‑party claims, and procedures for handling indemnity notices and defense.

Term & Termination

Set initial term, renewal mechanics (automatic or notice-based), cause and convenience termination rights, survival clauses, and transition assistance or wind-down obligations after termination.

Step-by-Step: Complete and Execute the MSLA

Complete the Legal MSLA Document in a controlled sequence to capture parties, terms, exhibits, signatures, and execution details for enforceability.

  • 01
    Prepare Parties: List full legal names and entity types.
  • 02
    Define Scope: Attach SOWs, deliverables, and acceptance criteria.
  • 03
    Set SLAs: Specify metrics, measurement periods, and remedies.
  • 04
    Sign & Archive: Obtain authorized signatures and retain records.

Typical Digital Workflow Settings for MSLA Execution

Configure digital workflow settings for Legal MSLA routing, signer order, conditional fields, and post-signature distribution before sending.

Field Configuration
Signer Order Specify sequential or parallel signing order
Authentication Email link, SMS OTP, or knowledge-based auth
Conditional Fields Show fields based on prior responses
Post-Sign Actions Send copies, notify stakeholders, archive PDF

Typical e-Execution Flow for the MSLA

A typical e-execution flow sends the MSLA through stages from upload to signed archive, capturing evidentiary metadata at each action for auditability.

  • Upload Document: Prepare final PDF or DOCX with exhibits
  • Place Fields: Add signature, initial, and date fields
  • Authenticate Signers: Use email, SMS code, or KBA
  • Capture Audit: Store timestamp, IP, and certificate

Technical and Integration Considerations

Ensure your e-signature platform supports supported file formats, signer authentication, and the integrations required by procurement and legal systems.

  • File Formats: PDF, DOCX, HTML supported
  • Integrations: Salesforce, Microsoft 365, NetSuite, Google Workspace
  • Authentication: Email link, SMS code, SSO options

Security and Compliance Items to Verify

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest
Certifications: SOC 2 Type II; ISO 27001; PCI DSS
Access Controls: Role-based access and SSO/SAML options
Audit Trail: Complete timestamped logs and certificates
BAA Availability: HIPAA-compliant with signed BAA option
Data Residency: EU-U.S. Data Privacy Framework support

Key Risks and Potential Penalties

Breach Liability: Unlimited damages risk if uncapped
Regulatory Noncompliance: Fines or corrective orders possible
IP Misassignment: Loss of rights or litigation
Tax Treatment Errors: Incorrect withholding or penalties
Operational Disruption: Service outages and SLA breaches
Contract Voidance: Improper signatures can invalidate agreement

Common Preparation Mistakes to Avoid

  • Failing to define measurable SLA metrics leads to disputes over performance and subjective enforcement during service interruptions.
  • Ambiguous license scope or missing usage limits can expose licensors to unauthorized distribution or licensees to unexpected fees and audits.
  • Omitting data protection specifics or cross-border transfer rules creates compliance gaps, particularly where HIPAA or state privacy laws apply.
  • Using inconsistent signature blocks or unsigned exhibits delays execution and may render specific contract terms unenforceable in litigation.

Key Dates and Timing to Specify in the MSLA

Include specific timing provisions for when obligations begin, notice periods, renewal windows, and billing cycles to reduce ambiguity.

Effective Date Format:

Enter MM/DD/YYYY; controls obligations start

Renewal Notice Period:

Specify notice, common range 30–90 days before expiration

Termination Notice:

Typically 30–60 days unless material breach

Invoice Payment Terms:

State Net 30 or Net 60 and late fee rates

Insurance Certificates:

Provide certificates before work begins; update annually

Milestone Sequence from Draft to Signed Record

Track key milestones from initial draft through negotiation, approval, signature, and archival to maintain accountability and meet contractual deadlines.

01

Drafting

Compile SOWs, pricing, IP clauses, and risk allocations.

02

Negotiation

Resolve commercial points and agree redlines.

03

Legal Approval

Counsel reviews liability, indemnity, and compliance clauses.

04

Execution

Obtain authorized signatures and distribute executed copies.

Pricing and Feature Snapshot for eSignature Vendors

Side-by-side starting prices and a few capability indicators for common e-signature vendors; signNow appears first per comparison protocol.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Premium) Varies by plan Varies by plan Varies by plan Varies by plan
HIPAA Compliant Yes (BAA req) Varies by plan Varies by plan Varies by plan Varies by plan

Real-World Examples of MSLA Use

Representative examples show how organizations used e-execution and process standardization to meet compliance and operational goals.

Martin Properties

Martin Properties moved lease and closing paperwork online to eliminate in-person signatures and reduce turnaround times.

  • Reduced execution time and manual processing.
  • The team achieved consistent compliance across mobile and offline modes, enabling staff to complete signings remotely while maintaining secure, auditable records and avoiding paper-handling delays.

BIS

BIS centralized contract workflows under a platform with SOC 2 controls to meet audit requirements and standardize approvals.

  • Improved compliance posture and centralized records.
  • Consolidated audit trails and standardized legal review shortened review cycles, reduced version confusion, and provided clearer evidence for regulatory inspections and internal audits.

Frequently Asked Questions about the Legal MSLA Document

Answers to common legal and technical questions when drafting, executing, or storing an MSLA using electronic methods.


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