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MSA Service Contract

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MSA SERVICE CONTRACT

This Master Service Agreement (the "Agreement") is made as of Effective Date: by and between Service Provider Name: with address and Client Name: with address .

RECITALS

WHEREAS, Service Provider is engaged in the business of providing professional services, including but not limited to those described in a Statement of Work;

WHEREAS, Client desires to retain Service Provider to perform such services under the terms and conditions set forth herein; and

WHEREAS, the parties intend that individual Statements of Work executed under this Agreement will set forth specific services, deliverables, schedules and pricing.

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

1. DEFINITIONS

1.1 "Agreement" means this Master Service Agreement including all Schedules and Statements of Work executed hereunder. "Statement of Work" or "SOW" means a written document executed by both parties that describes the Services, Deliverables, timelines and Fees.

1.2 "Services" means the services to be performed by Service Provider as set forth in each SOW. "Deliverables" means the tangible or electronic items to be delivered to Client as specified in a SOW.

2. SCOPE OF SERVICES

2.1 Services. Service Provider shall perform the Services described in each SOW in a professional and workmanlike manner in accordance with applicable industry standards. Each SOW shall incorporate the terms of this Agreement and, in the event of a conflict, the terms of the SOW shall control as to the particular Services only.

3. TERM; TERMINATION

3.1 Term. The initial term shall commence on the Effective Date and continue for an initial period of unless earlier terminated as provided herein. Renewal terms, if any, shall be set forth in an SOW or by written amendment.

3.2 Termination for Cause. Either party may terminate this Agreement or any SOW for material breach by the other party if the breach remains uncured thirty (30) days after written notice specifying the breach.

3.3 Termination for Convenience. Either party may terminate an SOW for convenience upon days' prior written notice to the other party, subject to payment for Services performed through the effective date of termination.

4. FEES AND PAYMENT

4.1 Fees. Client shall pay Service Provider the Fees set forth in each SOW. Unless otherwise stated, Fees are expressed in U.S. dollars and exclusive of taxes. Fees for time-and-materials work shall be invoiced in accordance with agreed rates.

4.2 Invoices; Payment Terms. Service Provider shall invoice Client in accordance with SOW billing milestones. Client shall pay all undisputed invoices within days of receipt. Late payments shall accrue interest at the lesser of 1.5% per month or the maximum rate permitted by law.

5. CONFIDENTIALITY

5.1 Confidential Information. "Confidential Information" means non-public information disclosed by a party that is designated confidential or that a reasonable person would understand to be confidential. Each receiving party shall: (a) protect the disclosing party's Confidential Information with at least the same degree of care it uses to protect its own confidential information, but no less than reasonable care; (b) use Confidential Information only to perform its obligations under this Agreement; and (c) not disclose Confidential Information except to employees, contractors or professional advisers who have a need to know and are bound by confidentiality obligations no less restrictive than those herein.

5.2 Exceptions. Confidential Information does not include information that: (a) is or becomes publicly known other than by breach of this Agreement; (b) was known to the receiving party prior to disclosure as shown by written records; (c) is lawfully received from a third party without restriction; or (d) is independently developed without use of the disclosing party's Confidential Information. Disclosure compelled by law shall be permitted only to the extent required and the receiving party shall provide prompt notice to the disclosing party.

6. INTELLECTUAL PROPERTY

6.1 Background Intellectual Property. Each party retains all right, title and interest in its Background IP. No license is granted except as expressly set forth in this Agreement or an SOW.

6.2 Deliverables; Ownership. Unless otherwise specified in a SOW, upon full payment of Fees for the applicable SOW, Service Provider assigns to Client all right, title and interest in the Deliverables created exclusively for Client under such SOW. Service Provider retains ownership of all underlying methodologies, tools, templates and pre-existing works used or incorporated in the Deliverables, and hereby grants Client a non-exclusive, perpetual, worldwide license to use such underlying materials solely in connection with the Deliverables.

7. WARRANTIES; DISCLAIMER

7.1 Service Provider Warranty. Service Provider warrants that Services will be performed in a professional manner consistent with industry standards. For any material breach of this warranty, Service Provider's sole and exclusive obligation and Client's sole and exclusive remedy shall be re-performance of the nonconforming Services or, if Service Provider cannot substantially correct such breach within a commercially reasonable time, a refund of Fees paid for the nonconforming Services.

7.2 Disclaimer. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN THIS SECTION, SERVICE PROVIDER DISCLAIMS ALL OTHER WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

8. LIMITATION OF LIABILITY

8.1 Exclusion of Special Damages. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES, INCLUDING LOSS OF PROFITS, LOSS OF BUSINESS OR DATA, EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

8.2 Cap on Liability. EXCEPT FOR A PARTY'S INDEMNIFICATION OBLIGATIONS OR BREACH OF CONFIDENTIALITY, THE AGGREGATE LIABILITY OF A PARTY ARISING OUT OF OR RELATED TO THIS AGREEMENT SHALL NOT EXCEED THE AMOUNTS PAID OR PAYABLE TO SERVICE PROVIDER UNDER THE APPLICABLE SOW DURING THE TWELVE (12) MONTHS PRECEDING THE EVENT GIVING RISE TO LIABILITY, OR , whichever is greater.

9. INDEMNIFICATION

9.1 By Service Provider. Service Provider shall defend, indemnify and hold harmless Client and its officers, directors and employees from and against third-party claims alleging that the Deliverables infringe any third-party patent, copyright or trade secret, provided Client gives Service Provider prompt written notice and sole control of the defense and settlement, and reasonable cooperation.

9.2 By Client. Client shall indemnify and hold harmless Service Provider from claims arising out of Client's misuse of the Deliverables, Client Data, or Client's breach of this Agreement.

10. INSURANCE

Service Provider shall maintain at its expense during the term of this Agreement commercial general liability insurance, professional liability/errors & omissions insurance and workers' compensation as required by law. Upon reasonable request, Service Provider shall provide certificates evidencing such coverage.

11. COMPLIANCE; DATA PROTECTION

Each party shall comply with all applicable laws, rules and regulations in performing its obligations under this Agreement. Service Provider shall implement reasonable administrative, technical and physical safeguards to protect Client Data against unauthorized access, loss or disclosure.

12. SUBCONTRACTING

Service Provider may engage subcontractors to perform portions of the Services so long as Service Provider remains responsible for performance and compliance with this Agreement. Service Provider shall ensure subcontractors are bound by obligations consistent with this Agreement, including confidentiality obligations.

13. CHANGES

Changes to the scope, schedule, or Fees shall be made only by a written change order signed by authorized representatives of both parties. Change orders shall describe the change, any adjustment to Fees, and the revised schedule.

14. NOTICES

All notices required or permitted under this Agreement shall be in writing and delivered by hand, overnight courier, or certified mail (return receipt requested) to the addresses set forth below or such other address as either party may designate by written notice in accordance with this Section. Notices shall be effective upon receipt.

15. AMENDMENT; WAIVER; COUNTERPARTS

15.1 Amendment. No amendment to this Agreement shall be effective unless in writing and signed by authorized representatives of both parties.

15.2 Waiver. No waiver of any term or breach shall be effective unless in writing. Failure to enforce a right shall not be deemed a waiver of that right.

15.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original but all of which together constitute one and the same instrument. Signatures delivered by electronic means shall be binding.

16. GOVERNING LAW; ENTIRE AGREEMENT; SEVERABILITY

16.1 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the jurisdiction specified below without regard to its conflict of laws principles.

16.2 Entire Agreement. This Agreement, together with any SOWs and attachments, constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior and contemporaneous agreements and understandings.

16.3 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 to replace the invalid provision with a valid provision that achieves the original intent.

17. MISCELLANEOUS

17.1 Relationship of the Parties. The parties are independent contractors. Nothing in this Agreement creates an employment, partnership, agency or joint venture relationship.

17.2 Publicity. Neither party shall issue any press release or make any public statement relating to the relationship or work performed under this Agreement without the other party's prior written consent, except as required by law.

Service Provider Printed Name:

Service Provider Signature:

Date:

Client Printed Name:

Client Signature:

Date:

Enter text✕

What an MSA Service Contract Is and why it matters

A Master Service Agreement (MSA Service Contract) is a standing contract that defines the long‑term legal and commercial relationship between two parties delivering and receiving services. It sets core terms — scope, payment, liability, confidentiality, intellectual property, warranties, and dispute resolution — while allowing separate statements of work or purchase orders to specify project details. Using an MSA reduces repetitive negotiation, clarifies recurring obligations, and creates a single reference for amendments, renewals, and governance across multiple engagements.

Why a well‑crafted MSA Service Contract helps both parties

A complete MSA Service Contract standardizes expectations, limits exposure through defined liability caps, and speeds implementation by delegating project specifics to later SOWs or purchase orders.

Why a well‑crafted MSA Service Contract helps both parties

Who typically prepares and signs an MSA Service Contract

Common users include procurement, legal counsel, program managers, and vendor account executives who coordinate recurring work.

  • Procurement or Sourcing teams: negotiate payment terms, renewal periods, and performance metrics for multiple projects.
  • In‑house Legal or Outside Counsel: draft indemnities, IP assignment, limiting language, and dispute resolution clauses.
  • Program or Delivery Managers: translate MSA obligations into project SOWs and track SLA compliance.

Final execution normally requires authorized signatories from both organizations and any delegated approvers specified in the signature block.

Primary signatory roles

Procurement Manager

A procurement manager reviews commercial terms, approves payment schedules and vendor performance clauses, and ensures SOWs comply with the MSA's financial and SLA requirements.

General Counsel

Legal counsel negotiates indemnities, liability caps, IP assignments, confidentiality language, and governs enforceability issues to align the MSA with corporate risk tolerances.

Core sections to include in every MSA Service Contract

A professional MSA Service Contract organizes legal and operational terms so project teams can execute SOWs without re‑negotiating foundational clauses each time.

Scope of Services

Define high‑level services, exclusions, deliverable categories, and process for attaching project‑specific SOWs to avoid ambiguity about covered work.

Term and Renewal

Specify start date, initial term, automatic renewal conditions, and notice periods for non‑renewal or termination to prevent unintended extensions.

Payment and Invoicing

Detail pricing method, invoicing cadence, payment terms (e.g., Net 30), late fees, and expense reimbursement rules to reduce billing disputes.

Confidentiality and IP

Include confidentiality obligations, data handling rules, and intellectual property ownership or license terms for deliverables and pre‑existing materials.

Liability and Indemnities

Set liability caps, carve‑outs (e.g., willful misconduct), and mutual indemnity obligations to allocate commercial risk between parties.

Termination and Transition

Explain grounds for termination, cure periods, data return or destruction obligations, and transition assistance to facilitate orderly wind‑down.

Step‑by‑step: completing and executing an MSA Service Contract

Follow a clear sequence from drafting to execution to ensure legal sufficiency and operational readiness.

  • 01
    Draft: Prepare MSA template with standard clauses and attachable SOW structure.
  • 02
    Review: Legal and procurement review key commercial and risk provisions.
  • 03
    Negotiate: Exchange markups, track changes, and record agreed edits in a single master document.
  • 04
    Execute: Obtain authorized signatures and store the signed version with audit details.

How to configure an online signing workflow for the MSA

Set workflow elements so each execution is auditable, repeatable, and aligned with internal approval rules.

Field Configuration
Template Name Use a single MSA template with variable fields for party names.
Signer Order Set sequential or parallel signing according to approval hierarchy.
Authentication Require email plus SMS code or other verifier for high‑risk agreements.
Reminders & Expiry Enable automated reminders and an expiration date for outstanding invites.

Technical considerations for digital completion and storage

Confirm supported file formats, integration points, and authentication methods before selecting a signing platform.

  • File Formats: PDF, DOCX, and HTML accepted.
  • Integrations: CRM and storage connectors available.
  • Auth Options: Email, SMS, and advanced MFA.

For enterprise use, verify SSO, API access, audit trail detail, and compliance certifications to match your legal and IT policies.

Typical online signing flow for the MSA Service Contract

An efficient eSignature workflow minimizes friction while preserving legal evidence for the signed agreement.

  • Upload Document: Sender uploads the MSA template to the signing platform.
  • Place Fields: Add signature, name, date, and optional initial fields.
  • Add Signers: Enter signer emails and set signing order.
  • Collect Signatures: Signers authenticate, review, and sign electronically.

Common timelines and notice periods to include

Explicit timelines prevent ambiguity about performance, termination, and renewals in an MSA Service Contract.

Effective Date:

Date when contractual obligations begin.

Payment Terms:

Typical Net 30 or Net 45 for invoices.

Termination Notice:

30–90 days depending on service criticality.

Renewal Notice:

60–90 days advance notice to avoid automatic renewal.

SOW Acceptance:

Defined review period (e.g., 10 business days) for new SOWs.

Key milestones from signing to ongoing management

Track milestone checkpoints so teams know who must act and when during the MSA lifecycle.

01

Negotiation Complete

All redlines resolved and final draft approved by legal.

02

Agreement Execution

Authorized signatures applied and audit record archived.

03

Onboarding Start

Project kickoff and SOW alignment with operational teams.

04

Renewal Review

Business review for renewal or termination options.

How an MSA compares to a Statement of Work

MSAs and SOWs are complementary: the MSA sets the rules, the SOW sets the deliverables and pricing for a specific engagement.

Criteria MSA SOW
Purpose framework relationship project specific
Typical Length longer shorter
Attachment Method standalone master exhibit to msa
Updates amendment process replaced per project

Typical eSignature vendor pricing and feature snapshot for MSA use

Platform selection affects cost, compliance features, and envelope limits. The table shows common starting prices and key features for high‑level comparison.

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 Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Security and compliance elements to document for signed MSAs

Encryption: TLS 1.2/1.3 in transit; AES‑256 at rest
Certifications: SOC 2 Type II and ISO 27001 available
HIPAA Support: BAA available where required
21 CFR Part 11: Controls to support electronic records
Audit Trail: Time‑stamped signature events and IP logging
Accessibility: WCAG 2.0 Level AA compliance

Primary risks from incomplete or incorrect MSAs

Liability Exposure: Unlimited damages risk
Indemnity Gaps: Undefined scope of indemnification
Payment Disputes: Late payment and interest conflicts
Compliance Breach: Data protection violations
Unenforceable Clauses: Overbroad non‑competes
Audit Failures: Missing execution evidence

Frequent mistakes to avoid when preparing an MSA

  • Leaving scope undefined or relying on vague language that forces repeated negotiations and disputes over deliverables.
  • Attaching outdated exhibits without version control so parties execute inconsistent SOWs tied to the master agreement.
  • Failing to specify the governing law and venue, which can lead to jurisdictional disputes and uncertain enforcement.
  • Not confirming signatory authority or required approvals, resulting in unsigned or procedurally defective contracts.

Practical tips for accurate and efficient MSA completion

Adopt standardized templates, clear version control, and auditable signing processes to reduce negotiation time and legal exposure.

Use a single canonical template
Maintain one approved MSA template in version control; use tracked change logs and limit clause edits to required commercial exceptions.
Attach clear exhibits and SOWs
Include schedules, fee tables, and acceptance criteria as numbered exhibits referenced by section to avoid ambiguity.
Document signatory authority
Require printed name and title, and ensure the signer has delegated authority to bind the organization.
Preserve execution evidence
Keep signed PDFs with audit trails, timestamps, and signer authentication records for legal defensibility.

Real examples of MSAs executed with digital workflows

These condensed examples illustrate operational gains when organizations standardize MSAs and use digital signing with audit trails.

Optica Ventures — Brian Fitzgibbons

Optica standardized templates to reduce negotiation cycles and improve customer experience.

  • The interface is simple and easy to use.
  • The result was faster customer execution and fewer follow‑ups because templates and signing processes were consistent across teams.

Martin Properties — Tim Martin

A property services firm moved master agreements online to eliminate paper delays and support mobile signings.

  • Mobile and offline signing supported deals.
  • Processing and executing documents online maintained compliance and sped up contract turnaround with verifiable audit logs.

Common questions about executing and managing MSA Service Contracts

Answers to frequent questions on eSigning, enforceability, signatures, and recordkeeping for MSA Service Contracts.


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