A Master Service Agreement (MSA) is a contract between two or more parties that establishes the terms and conditions that will govern all current and future activities and responsibilities. It is also known as a framework agreement or service level agreement. The purpose of an MSA is to simplify future agreements and speed up the negotiation process. By establishing basic terms upfront, subsequent contracts can be more easily negotiated and agreed upon, saving time and money for everyone involved. An MSA can be used to mediate employer-employee conflict in the workplace by having a reference point to work out solutions and set specific terms.

An MSA outlines governing contractual terms and allows for additional adjustments. It can allocate risks by using sophisticated strategies to identify potential risks and create a strategy to mitigate them. The main functions of MSAs are to outline governing contractual terms and allow for additional adjustments. Some of the basic terms of an MSA include confidentiality, product delivery, dispute resolution, geography, intellectual property rights, limitations of liability, payment terms, venue, warranty, and work standards.

MSAs are usually used to lay out the nitty-gritty legalese considerations that are usually of interest to the transactional lawyers working on an agreement, while the subsidiary arrangements and agreements are generally more helpful to the operations teams. The types of agreements governed by an MSA can include client/vendor interactions, government contracts, union negotiations, and any long-term, ongoing business relationships.

In summary, an MSA is a fundamental contract outlining the scope of the relationship between two parties, including terms and conditions for current and future activities and responsibilities. It simplifies future agreements and speeds up the negotiation process. It outlines governing contractual terms and allows for additional adjustments.