nounlegal

MSA (master services agreement)

A framework contract that sets general terms between a client and a supplier so each new project only needs a short statement of work.

Definition

A master services agreement, or MSA, contains the standard legal terms that govern a long-term relationship: payment terms, confidentiality, intellectual property, liability, termination and dispute resolution. Individual projects are then described in separate statements of work that refer back to the MSA. This saves negotiating the same terms repeatedly and keeps the commercial rules consistent. If the MSA and an SOW conflict, the MSA usually states which one prevails, so check that order of precedence. Both documents should be read together.

In a sentence

  • The agency and client signed an MSA, then a short SOW for each campaign.

  • The MSA said the SOW would override it only when explicitly stated.

Related terms

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