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Contract & Commercial Law vocabulary · Commercial Agreements

Service level agreement

Meaning in contract & commercial law, with examples

nounCommon term

In contract & commercial law, service level agreement means: A contract, or part of a contract, that sets measurable standards for a service, such as availability or response times, and says what happens if they are not met.

In Turkish: hizmet seviyesi sözleşmesi, hizmet düzeyi anlaşması

How it is used

Usually called an SLA and common in IT, cloud, outsourcing and logistics contracts. If the provider misses the targets, the customer typically receives 'service credits' (a price reduction) and, after repeated failures, may have a right to terminate.

Example sentences

  1. The service level agreement guarantees 99.9% availability each month.

  2. Under the service level agreement, critical incidents must be answered within one hour.

Common collocations

  • meet the SLA
  • SLA targets
  • service credits
  • breach the SLA
  • supplierA business that provides goods or services to another business, usually under a supply agreement or individual purchase orders.
  • remedyA way the law helps a party whose rights have been breached, such as damages, specific performance, an injunction or termination.
  • terminateTo end a contract officially, for example because the other party has breached it, or by giving the notice that the contract allows.
  • liquidated damagesA fixed sum agreed in the contract that one party will pay if a specific breach occurs, most often late completion or late delivery.

More terms: Commercial Agreements

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This page explains English vocabulary for learners. It is not legal advice.