Mutual Service Agreement

13 Dec

The Master Service Agreement generally contains provisions that limit the liability of the service provider and, in some cases, the client. The MSA often contains a limitation on the determination of damages, which attempts to exclude recovery of damages other than direct damages. In addition, a Master Services Agreement generally contains a limitation on the determination of liability, which seeks to cap the amount of damages for which some could be held liable under the Master Service Agreement and the Statements of Work. Both damage limitation and liability limitation are very different and are often heavily negotiated. If Instinet and/or ENTITY access the other party`s crossing services as part of the terminal services via the terminal and equipment. Instinet and ENTITY recognize and accept that the other party has the appropriate power and authority that it can exercise at its sole discretion to cancel at any time the trade in its crossover services in each action. On the other hand, a service provider may be an SME that includes a much larger business through a reseller or other relationship to provide licensed services or materials as part of a transaction. Often, the service provider does not have the leverage or practical ability to impose its negotiated terms on a much larger company than it does, and in some cases it will not even be able to bring them to the table to discuss problems. In some cases, a transaction structure may be necessary for the customer to be directly linked to the third-party supplier and, in some cases, customers may already have a framework contract with the third party, which can be used as a platform to manage that part of the structure. As with all commercial contracts, a master service agreement and a declaration of termination and addressing rights will apply. As a general rule, the Master Service Agreement has a fixed departure period, which is automatically extended on a “persistent leaf” basis, subject to the right of one party to terminate the MSA by providing the other party with a fixed period for prior written notification. Clients often want the right to terminate a current MSA or SOW for convenience after notice, and this is an area that varies depending on the economic relationship provided by the relationship.

The list of details will help both parties honour their MSA site. It is important to decide on possible problems in advance, because the business community has many possible problems. Something as simple as a third party going bankrupt could derail an MSA.