A Service Level Agreement formalises the minimum level of service that is expected by a client of a particular provider. A contract lawyer normally drafts these agreements, as the Agreement itself constitutes a legally binding contract between a customer and his or her service provider.

Who uses a Service Level Agreement?

There are many different industries where Service Level Agreements are commonly used. Take your Internet service provider as an example of where you might find a Service Level Agreement. The Agreement will outline the standards that the provider is required to meet.

When the service provider is unable to meet these standards, i.e. falls below the expected levels of service, the other party may be entitled to make a claim to be compensated or seek damages.

Another area where Service Level Agreements are very popular is in hosting. If your business is dependant on your website being constantly available to customers (for instance if you’re running an ecommerce company), it’s vital that your hosting provider agrees to 99.99% (or something close to it) uptime. Your Service Level Agreement will set this out.

When an IT solicitor drafts a Service Level Agreement effectively, it assesses the performance of the provider in meeting its Key Performance Indicators. If there are inconsistencies with performance and expectations, the parties can refer back to this Agreement to address these issues.

What are the advantages of using a Service Level Agreement?

There is a common misconception surrounding Service Level Agreements – being that they are only beneficial to the customer. However, Service Level Agreements can be beneficial to both parties for various reasons, including the following:

  • Prioritises the customers’ expectations;
  • Explains each party’s expectations of the other;
  • Creates a culture of high-quality services;
  • Formalises each party’s duties and rights;
  • Sets benchmarks that each party expects the other to achieve by certain dates;
  • Encourages the service provider to become more innovative;
  • Allows customers to compare the services of various competing service providers; and
  • Gives the customer an easy method for monitoring the performance levels of the service providers.


LegalVision has extensive experience in drafting and reviewing both Service Level Agreements and Software as a Service Agreements. If you are, or will be, a party to such an agreement, and require the technical and legal expertise of an IT solicitor, contact LegalVision’s team of IT solicitors to get the advice you need to give yourself adequate protection.

COVID-19 Business Survey
LegalVision is conducting a survey on the impact of COVID-19 for businesses across Australia. The survey takes 2 minutes to complete and all responses are anonymous. We would appreciate your input. Take the survey now.

About LegalVision: LegalVision is a tech-driven, full-service commercial law firm that uses technology to deliver a faster, better quality and more cost-effective client experience.

The majority of our clients are LVConnect members. By becoming a member, you can stay ahead of legal issues while staying on top of costs. For just $199 per month, membership unlocks unlimited lawyer consultations, faster turnaround times, free legal templates and members-only discounts.

Learn more about LVConnect

Lachlan McKnight
Need Legal Help? Get a Free Fixed-Fee Quote

If you would like to receive a free fixed-fee quote or get in touch with our team, fill out the form below.

  • By submitting this form, you agree to receive emails from LegalVision and can unsubscribe at any time. See our full Privacy Policy.
  • This field is for validation purposes and should be left unchanged.
Our Awards
  • 2019 Top 25 Startups - LinkedIn 2019 Top 25 Startups - LinkedIn
  • 2019 NewLaw Firm of the Year - Australian Law Awards 2019 NewLaw Firm of the Year - Australian Law Awards
  • 2020 Fastest Growing Law Firm - Financial Times APAC 500 2020 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review 2020 AFR Fast 100 List - Australian Financial Review
  • 2020 Law Firm of the Year Finalist - Australasian Law Awards 2020 Law Firm of the Year Finalist - Australasian Law Awards
  • Most Innovative Law Firm - 2019 Australasian Lawyer 2019 Most Innovative Firm - Australasian Lawyer
Privacy Policy Snapshot

We collect and store information about you. Let us explain why we do this.

What information do you collect?

We collect a range of data about you, including your contact details, legal issues and data on how you use our website.

How do you collect information?

We collect information over the phone, by email and through our website.

What do you do with this information?

We store and use your information to deliver you better legal services. This mostly involves communicating with you, marketing to you and occasionally sharing your information with our partners.

How do I contact you?

You can always see what data you’ve stored with us.

Questions, comments or complaints? Reach out on 1300 544 755 or email us at info@legalvision.com.au

View Privacy Policy