Dependency on (online) services
Buyers of (online) services may be at risk of becoming dependent on a (online) service. In the event of a malfunction, a customer may no longer be able to use the service and, in the case of critical applications, work may even be stopped. If important agreements cannot be met as a result, this can cause considerable damage. For a customer it is therefore of great importance that malfunctions are limited and that the availability of the service is as high as possible. On the other hand, the service provider has its own (commercial) interests and simply cannot or will not live up to all expectations. Entering into a Service Level Agreement offers a solution.
What is a Service Level Agreement (SLA)?
An SLA describes the quality of services provided. Based on the law, a service provider has a duty of care to provide its services as a "good contractor". A service level agreement elaborates this and specifies the level of service that is guaranteed. A service level agreement is often offered as a separate agreement, i.e. in addition to the service agreement. However, it is also possible to include the SLA in the main agreement.
What is included in an SLA?
What exactly is included in an SLA differs per organization, service and product. Parties are free to decide the level of detail they want it to have. There are a number of elements that are almost always included in an SLA:
- Description of the products/services to which the SLA applies;
- Duration of the SLA;
- The activities covered by the SLA and the activities that will be invoiced separately;
- Response times;
- Prices and payment conditions;
- Method of reporting;
- Possibilities to change the services under the SLA; and
- Consequences for non-compliance with the agreements in the SLA.
Need help with a Service Level Agreement?
At Legal Q, we work differently than traditional attorneys and lawyers. We advise you with practical solutions and understand commercial relationships. Would you like support in drawing up a Service Level Agreement? Or would you like to have an existing SLA assessed on risks? Our legal experts will be happy to assist you. Please feel free to contact us for more information.