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:

Identification of services to be provided
Price and payment
Supplier obligations
Customer obligations
Failure of or delay in performance
IP and third party infringement
Confidentiality/non-disclosure
Termination
Timetable for delivery

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:

Apply our extensive experience and expertise in drafting a service level agreement which is appropriate for your needs
Ensure that we understand your commercial requirements and then take a practical approach which ensures that the needs of your business are met and any risks are minimised
Provide you, whenever possible, with an up-front fixed cost quote for the drafting of, or advice, on any service level agreement
Make sure that your service level agreement is compliant with all relevant legislation and is capable of being enforced when the need arises

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Key contacts

Supply or Service Level Agreements

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What is a service level agreement?

Drafting a service level agreement?

Breach of a service level agreement

How can we help?

Key contacts

Tim Polding

Hope Gill-Daintith

Amelia Loh

Get in touch