Service level agreement in contracts
The measurable promises in a service contract, and what happens if you miss them.
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
What it means
An SLA sets measurable standards and the consequences of failing them, usually service credits.
Why it matters
Service credits are often the exclusive remedy, which caps the customer's recovery — and if the drafting does not say exclusive, they sit on top of ordinary damages.
What it looks like in practice
Define the clock precisely: when it starts, what pauses it, what counts as a response versus a resolution, and what hours it runs.\n\nCap total credits, and include a right to terminate for persistent failure rather than letting credits run forever.
What to watch out for
Promising availability you do not control. You cannot offer better uptime than your own hosting provider gives you.
Where to get proper advice
A commercial solicitor. For a clause you rely on regularly, one properly drafted set is cheaper than one dispute.
Where to read more
Last reviewed 2026-08-28 by Fiducia Together · Next review due 2027-08-28
Please note: This page explains what a term means. It is general information, not legal, financial, tax or investment advice, and it does not know anything about your business. Before you sign, file or commit to anything, check it with an accountant, a solicitor, or the official guidance we link to.
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