A service agreement is a formal agreement between two or more parties that articulates the terms and conditions of a particular service relationship

It can take the form of a Memorandum of Understanding, a Master Agreement, or a Service Level Agreement. The choice of agreement and the relationship to one another depends upon the scope and complexity of the service relationship and services involved.

Service agreements serve three primary functions:
  1. Articulating the expectations of the parties to the agreement;
  2. Providing a mechanism for governance and issue resolution and
  3. Acting as a scorecard against which to examine performance and results.