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Managed Services Agreements

What is an MSP?

MSP (Managed Service Provider) is a company that remotely manages a client's IT systems.

Can I terminate anytime?

Usually no. Long-term contracts require advance notice and sometimes early termination fees.

Who owns the passwords?

All administrative passwords belong to the client. The contract must ensure their return.

What is Response Time?

It is the time within which the provider must acknowledge a problem (not necessarily resolve it).

Reading Time

2 min

Published

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Managed Services Agreements (MSA) are used when a company (client) outsources the management of IT infrastructure, networks, or cybersecurity to an external provider (MSP). Unlike a one-time project, this is a long-term relationship where the provider assumes responsibility for the smooth operation of systems (24/7 monitoring, updates, support). An MSA is a critical document defining the Scope of services, Service Level Agreements (SLA), and liability during incidents.

Legal.ge offers auditing and drafting of MSP agreements. We assist both providers and clients to avoid misunderstandings regarding "what's included in the price" and "who is to blame when the server goes down."

What does the Managed Services Contract cover?

The service covers:

  • Service Description: Detailed list — what is included (e.g., patching) and what is an extra paid service (e.g., on-site visits).
  • SLA and Credits: Guarantees on response times and discount mechanisms for violations.
  • Data Protection and Confidentiality: MSP access to client sensitive data and security obligations.
  • Indemnification: Compensation for damages in case of third-party claims.
  • Termination Conditions: Procedures for returning passwords and documentation upon contract end.

Common Real-World Scenarios

Disputes in MSP relationships:

  • Scope Creep: The client requests more than is in the contract, and the provider asks for extra payment.
  • Cyber Incident: The client was hacked. The MSP says the contract didn't cover cyber defense; the client thinks otherwise.
  • Automatic Renewal: The contract automatically renewed for 1 year, but the client wanted to terminate.

Legal Framework: Service Provision

Regulated by the Civil Code (Service Contract). It is important to establish the parties' independent contractor status to avoid reclassification as an employment relationship.

Step-by-Step Service Process

  1. Needs Analysis: Identifying critical services.
  2. Drafting: Preparing MSA and SLA.
  3. Review: Agreeing on terms.
  4. Signing: Execution.

Why choose a specialist on Legal.ge?

IT infrastructure is the backbone of business. Legal.ge experts ensure your MSP contract is clear, fair, and protects you from the legal consequences of technical disasters.

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