They set out the guidelines and expectations that are addressed to the service provider and the penalties if the contractor does not achieve its objective. In some cases, bonuses are set for customers who receive them if they exceed their goals. Because these service level agreement templates are generally tailored to each customer, they are normally created for a particular project. In case of misunderstanding, the service contract should clearly indicate who is right and how to solve the problem. A service agreement may be used for marketing services, advertising services, trial services, consulting services, management services or other professional services if a person has agreed to provide a service to another person. Written service contracts are usually more necessary when the contractual terms become more complex or need to be explained more precisely. If you run a business, time is money. The second is the framework contract. The framework contract describes the general conditions under which the contractor will collaborate with the customers. On the other hand, in most cases, the service contract is included in the framework contract. It is important because it adds an element of specificity in relation to the services provided and describes the metrics used to measure performance. A service contract is required whenever a contractor sells its services or when a company buys a service from another company. .