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A service level agreement (SLA) is a contract, or a schedule to a larger contract, that defines the standard of service a provider must deliver, how performance is measured, and what remedy applies if the standard is missed. It turns promises like "fast support" or "reliable service" into measurable commitments.
Last updated: October 2026. This page is general information, not legal advice for your specific case. Laws and stamp duty can change, so we confirm the current position before drafting.
An SLA records the level of service agreed between a provider and a customer. It usually sits alongside a master services agreement, statement of work or service contract, and focuses on performance: how much, how fast, how reliable and how problems are handled.
A weak SLA uses vague words and has no way to measure or enforce them. A strong SLA names specific metrics, explains how and by whom they are measured, sets the remedy for a miss, and states what is outside the provider's control. It also protects the provider by capping liability and excluding events it cannot fairly be held responsible for.
SLAs are common for software, cloud, hosting, outsourcing, managed services, support and agency work. The right drafting depends on whether you are the one delivering the service or the one relying on it. Brand names used in the service are best protected too; see our trademark registration online service.
What every SLA should settle in writing.
The right metrics and remedies depend on the service.
Availability and support commitments for software products.
Ongoing IT support, maintenance and infrastructure.
Server, hosting and cloud service commitments.
Outsourced processes, support and back-office work.
Marketing, design and development service standards.
Service standards between departments or with suppliers.
Not sure which type fits your service? Share the details and our experts will advise free of charge.
The terms that make service promises measurable and enforceable.
Defines what is included, what is not, and the service hours and locations.
Sets measurable targets such as availability, response time and resolution time.
States how performance is tracked, by whom, and how often reports are shared.
Sets the fee credit or compensation when a target is missed, within lawful limits.
Lists events outside the provider's control, such as planned maintenance or customer-caused delay.
Covers confidentiality, security measures and handling of personal data.
Caps liability and allows exit for repeated or serious SLA failures.
Provides contacts, an escalation path, governing law and arbitration or court terms.
From understanding your service to a signed, stamped agreement.
Timelines depend on how quickly the parties agree on terms. Not to scale.
We learn what is being delivered, who relies on it and what a failure would cost.
We help you choose metrics that can actually be measured and met.
We agree on credits, caps and the events that fall outside the provider's control.
We draft clear clauses, or an SLA schedule that fits your master services agreement.
Both sides review the draft and we update it until the terms are settled.
We guide you on stamp duty and execution so the agreement can be relied upon.
Keep these ready to avoid delays. Our expert will confirm the exact list for your case.
The cost depends on the type of service, the complexity of the metrics and how much negotiation is needed. It generally has three parts:
Our fee depends on the scope and complexity. Call free for a custom quote before you pay anything.
Set by state law, so it varies by state and document. We confirm the amount before execution.
A master services agreement, NDA or data processing terms are charged separately where needed.
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Choose the option that matches your situation, or call free for a custom quote.
You provide a service and need a clear SLA for your customers.
You received an SLA from a vendor or customer and want it checked.
You need the full contract set for an ongoing service relationship.
Our professional fee is quoted after a free call. Stamp duty and any related document charges are separate. Not sure which option fits? Ask for a free consultation.
Anyone who buys or sells a service where performance matters.
Setting clear uptime and support terms for customers.
Defining response, resolution and maintenance commitments.
Stating availability, backup and security obligations.
Agreeing quality, turnaround and staffing standards.
Setting delivery timelines and revision limits with clients.
Making sure promised performance has a remedy if it is missed.
A quick view of how these documents differ. Ask us which ones you need.
| Document | Main purpose | Focus | Measured by | Note |
|---|---|---|---|---|
| Service level agreement | Set service standards and remedies | Performance | Defined metrics | Often a schedule to an MSA |
| Master services agreement | Set overall legal terms | Relationship | Contract terms | Governs many projects |
| Statement of work | Describe a specific project | Deliverables | Milestones | Sits under an MSA |
| NDA | Protect confidential information | Secrecy | Compliance with terms | Often signed first |
Most SLA disputes come from vague wording and unmeasured promises.
An SLA is only useful if performance is tracked and discussed.
Store stamped, signed copies and all annexures safely with both sides.
Record performance against each metric and share the reports the SLA requires.
Meet to discuss performance and agree changes in writing where needed.
Raise issues in the manner and time the SLA requires, and keep a written record.
Quick answers on service level agreements in India.
A service level agreement is a contract, or part of one, that sets out the standard of service a provider must deliver, how it is measured, and what happens if the standard is not met.
Yes, if it meets the requirements of a valid contract under the Indian Contract Act, 1872. It should be properly stamped as per the applicable state stamp law to be admissible as evidence.
Scope of services, measurable service levels, measurement and reporting, service credits or remedies, exclusions, support and escalation, data protection, term and termination, liability limits, governing law and dispute resolution.
Common metrics include uptime or availability, response time, resolution time, delivery or turnaround time, error or defect rate, and support hours. The right metrics depend on the type of service.
Service credits are a pre-agreed reduction in fees, or a credit against future invoices, when the provider misses a service level. They usually act as the main remedy for a missed target unless the agreement says otherwise.
Section 74 of the Indian Contract Act, 1872 allows reasonable compensation for breach up to the amount named, rather than a penalty as such. Credits and liquidated damages should be a reasonable pre-estimate of loss.
A master services agreement sets the overall legal terms of the relationship, while an SLA is usually a schedule that sets measurable performance standards and remedies for specific services.
Any business that buys or sells a service where performance matters, such as IT and software providers, SaaS companies, outsourcing and support vendors, hosting providers, agencies and their customers.
Stamp duty on agreements is governed by state law, so the requirement and amount depend on the state and the nature of the document. We confirm the position before execution.
Cost depends on the type of service, the complexity of the metrics and how much negotiation is needed. Stamp duty is separate. Call us free for a custom quote before you pay anything.
Need an SLA for your service or want one checked before you sign? Speak to our legal expert today – the first consultation and the quote are free.
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