Master Services Agreement
Definition
A comprehensive contract that establishes the general terms and conditions governing all future projects or transactions between two parties, eliminating the need to renegotiate standard terms for every new engagement.
Why it matters
An MSA dramatically accelerates starting new projects with established clients by removing repeated contract negotiation. It also provides clearer legal protection than informal arrangements because all terms are explicitly agreed in advance.
Example
A founder who works with recurring agency clients has all parties sign an MSA covering payment terms, IP ownership, confidentiality, liability limits, and dispute resolution. When a new project starts, they issue only a short statement of work referencing the MSA, which both parties have already approved.
Related terms
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