Supply Or Service Level Agreements

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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.

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.

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 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 Service Level Agreement will at least provide a framework for resolving a dispute.

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.

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.

For further advice and information please use the contact form or call 01244 354697 and ask for Tim Polding.

Call and speak to a lawyer on 01244 312306

Tim Polding

Tim Polding

Associate Director & Commercial Solicitor

Matthew Canfield

Matthew Canfield

Commercial Solicitor