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Supply or Service Level Agreements

Service level agreements, otherwise known as supplier agreements, are agreements between customers and suppliers that define the goods and/or services which the latter must provide together with the rights and obligations of the parties.

Whether you require a review of your existing standard service level agreement, advice on contracts and contractual terms which another party is seeking to impose on you, or a bespoke agreement tailored to the needs of your business, we can help.

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What is a service level agreement?

A contract for services is governed by the Supply of Goods and Services Act 1982 (SGSA 1982) which implies certain terms into the contract, for example that the services will be performed with reasonable care and skill, that the work be carried out within a reasonable time and that a reasonable charge will be paid.

However, the SGSA 1982 does not control the relationship between supplier and customer, which is why a carefully drafted service level agreement is needed. This will not only include terms implied by the SGSA 1982, but also include express terms.

Drafting a service level agreement?

When drafting a service level agreement, the following areas are usually considered:

Breach of a service level agreement

Breach of a service level agreement can give rise to remedies for the injured party, usually compensation.

By entering into a service level agreement, both parties know from the outset their responsibilities and hopefully this will prevent future problems of non-performance. In the event that it does not prevent an issue from arising, the agreement will at least provide a framework for resolving a dispute.

How can we help?

One of the Corporate & Commercial Team’s specialist lawyers at Oliver & Co. can review your existing commercial relationships and advise whether a service level agreement is needed. We will:


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