Sale and Servicing Agreement

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Sale and Servicing Agreement

A sale and servicing agreement is a legally enforceable arrangement between two parties wherein one party agrees to provide a specific good or service to the other party and also undertakes to provide follow up services for a specified period of time. The basic premise of this contract is to safeguard the rights and interests of both the parties and at the same time facilitate the buyer to avail best service and use of the buyer’s product. After entering into this contract the buyer is assured of regular and best in class service from the seller and the seller is assured of regular and timely remuneration for good or service rendered.

A sound, negotiated and articulated sale and service agreement would contain all the important points such as detailed description and specifics of good or service, the payment to be made in lieu of the product, the timeline for the payment, the term of the service agreement, details of follow up services, the penalties and grievance handling mechanism.

Sale and Servicing Agreement

Sale and Servicing Agreement

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