A foundational contract outlining the terms and conditions governing the relationship between a service provider and a customer for ongoing services. This agreement establishes the framework under which individual subscriptions or service orders are placed. As an illustration, a software company might use this agreement to define the terms for access to its platform, while subsequent order forms specify the number of user licenses and the duration of each subscription.
Such an overarching framework streamlines future transactions, reducing negotiation time and legal costs associated with each new subscription. It creates consistency and predictability in the business relationship. These agreements have become increasingly prevalent with the rise of cloud computing and subscription-based business models, offering a structured approach to recurring revenue and customer management.
