The Procurement Glossary » Master Service Agreement (MSA)

Master Service Agreement (MSA)

Contracts & Legal

Also known as: MSA

Definition

An overarching contract setting the general terms governing a relationship, under which specific work is commissioned via SOWs or orders.

Explanation

The MSA negotiates the hard legal terms once — liability, IP, confidentiality, payment — so individual engagements only need a short statement of work. It speeds repeat business while keeping consistent protections.

Example

The consultancy MSA sets liability and IP terms; each project then runs off a two-page SOW.

Related terms

• Contract — A legally binding agreement between buyer and supplier setting out what will be supplied, at what price and on what terms.
• Statement of Work (SOW) — A document defining the scope, deliverables, timeline and acceptance criteria for a services engagement.
• Terms and Conditions (T&Cs) — The standard clauses governing a transaction or relationship, covering rights, obligations, liabilities and remedies.
• Framework Agreement — An umbrella agreement setting pre-negotiated prices and terms with one or more suppliers, from which individual orders are placed as needed.

Frequently Asked Questions

What is Master Service Agreement (MSA)?

An overarching contract setting the general terms governing a relationship, under which specific work is commissioned via SOWs or orders. The MSA negotiates the hard legal terms once — liability, IP, confidentiality, payment — so individual engagements only need a short statement of work. It speeds repeat business while keeping consistent protections.

Can you give an example of Master Service Agreement (MSA)?

The consultancy MSA sets liability and IP terms; each project then runs off a two-page SOW.

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