What exactly is a Master Service Agreement (MSA), and why is it so crucial for businesses?
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An MSA acts as the main framework for an ongoing business relationship. It sets out general terms for current and future services so that parties can execute statements of work (SOWs) without re-negotiating detailed agreements each time. This is especially useful in B2B, SaaS, and enterprise models where the MSA serves as the ‘umbrella agreement’ for all services or subscriptions procured by the customer.
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