Meaning & use

service agreement

noun·Advanced

Last updated

UK/ˈsɜːvɪs əˌɡriːmənt/
US/ˈsɜːrvɪs əˌɡriːmənt/

Meaning

  1. nouncountablebusinesslegal

    A formal written contract that sets out the terms under which one person or company provides services to another.

    Grammar: Countable: you can say 'a service agreement' or 'several service agreements'.

    Patterns

    • a service agreement between someone and someone
    • sign a service agreement
    • under a service agreement
    • a service agreement with someone

    The two firms signed a service agreement that covers maintenance for three years.

    Under the service agreement, the supplier must respond to complaints within 48 hours.

    We need a lawyer to check the service agreement before we sign it.

Word forms

pluralservice agreements

Common combinations

sign a service agreement
Both parties signed a service agreement last Friday.
a service agreement with someone
The hospital has a service agreement with a private cleaning company.
under a service agreement
Under the service agreement, all repairs are free for the first year.
a service agreement between A and B
The service agreement between the city and the bus company runs until 2030.
renew a service agreement
We usually renew the service agreement every December.

Synonyms and how they differ

contract
A general word for any binding agreement; 'service agreement' is more specific and sounds more formal.
service contract
Almost the same meaning and often used interchangeably, but 'service contract' is more common in everyday business talk.
maintenance agreement
Refers specifically to an agreement about keeping equipment or property in good condition, not services in general.

Word family

service noun
Work done for someone, often for payment.
agreement noun
An arrangement or promise accepted by two or more people.

Commonly confused: service agreement or service level agreement?

service agreement vs service level agreement

A service level agreement (SLA) is a specific type of service agreement that states exact performance targets, such as response times.

Practice

The company signed a service agreement ___ a local IT firm.

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