A master service agreement (MSA) is a type of contract between two parties – a customer and a service provider – that governs the terms and conditions of all long-term transactions between them. MSAs are important in industries where there are a lot of transactions between the parties and where each transaction may have its own statement of work.

An MSA outlines the terms and conditions of the relationship, including payment terms, delivery schedules, and service level requirements. An MSA helps both parties manage risk by providing a framework for how they will work together over time. The agreement typically covers a broad range of issues, such as intellectual property rights, confidentiality, warranties, and dispute resolution.

By having an MSA in place, the parties can avoid the time and expense of negotiating a new contract for each transaction, while still having the flexibility to negotiate individual statements of work as needed. This can lead to a more efficient and effective relationship between the parties, while also helping to ensure that both parties are held accountable to the terms of the agreement.