Sales Level Agreement for the United States

Sales Level Agreement Template for United States

A Sales Level Agreement (SLA) is a formal contract document used in the United States that establishes specific performance standards and metrics for product delivery or service provision. It defines the expected quality levels, delivery timeframes, and compensation mechanisms for failure to meet agreed standards. The document is governed by U.S. federal and state commercial laws, particularly the Uniform Commercial Code, and includes detailed specifications for measurement, reporting, and remedy procedures.

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What is a Sales Level Agreement?

Sales Level Agreements have become essential tools in modern business relationships, particularly in scenarios requiring measurable performance standards. This document type is commonly used when organizations need to establish clear, quantifiable metrics for product delivery or service quality. The Sales Level Agreement provides a framework for setting expectations, measuring performance, and managing accountability under U.S. jurisdiction. It typically includes specific performance metrics, measurement methodologies, reporting requirements, and remediation procedures.

What sections should be included in a Sales Level Agreement?

1. Parties: Identification of service provider and customer with full legal details

2. Background: Context and purpose of the agreement

3. Definitions: Key terms used throughout the agreement

4. Service Levels: Detailed description of service performance metrics

5. Service Credits: Compensation mechanism for failure to meet service levels

6. Measurement and Reporting: How service levels will be measured and reported

7. Term and Termination: Duration of the agreement and conditions for termination

8. Payment Terms: Pricing, invoicing, and payment conditions

9. Governing Law: Applicable law and jurisdiction

What sections are optional to include in a Sales Level Agreement?

1. Change Management: Process for implementing changes to service levels - used for complex or long-term agreements

2. Disaster Recovery: Procedures for service continuity in emergency situations - used for critical services or regulated industries

3. Security Requirements: Specific security measures and compliance requirements - used when handling sensitive data or in regulated industries

4. Data Protection: Specific provisions for handling personal data - used when personal data is processed

What schedules should be included in a Sales Level Agreement?

1. Service Level Metrics Schedule: Detailed technical specifications of service levels

2. Service Credit Calculation Schedule: Formula and examples for calculating service credits

3. Reporting Template: Standard format for service level reporting

4. Escalation Matrix: Contact details and procedures for issue escalation

5. Price Schedule: Detailed pricing structure and service fees

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Relevant legal definitions
Clauses
Industries

Uniform Commercial Code (UCC): Primary federal law governing commercial transactions, particularly Article 2 which regulates the sale of goods. Essential for establishing terms of sale, warranties, and remedies.

Federal Trade Commission Act: Federal legislation that prohibits unfair or deceptive trade practices. Must be considered when drafting terms related to advertising, marketing, and consumer interactions.

Sherman Antitrust Act and Clayton Act: Federal antitrust laws that ensure compliance with competition regulations. Important when drafting pricing terms and exclusive dealing arrangements.

E-SIGN Act: Electronic Signatures in Global and National Commerce Act - Provides legal framework for electronic contracts and signatures. Essential for digital agreement execution.

State Contract Laws: Varying state-specific contract regulations that may affect formation, enforcement, and interpretation of the agreement.

State Consumer Protection Laws: State-specific regulations protecting consumer rights and interests. Must be considered when drafting consumer-facing agreements.

State UCC Modifications: State-specific adoptions and modifications to the UCC that may affect commercial transaction terms.

State Data Protection Laws: State-specific regulations governing data privacy and protection, such as CCPA in California.

Industry-Specific Regulations: Sector-specific laws such as HIPAA for healthcare, GLBA for financial services, and FCC regulations for telecommunications.

Magnuson-Moss Warranty Act: Federal law governing consumer product warranties, requiring clear disclosure of warranty terms and conditions.

Americans with Disabilities Act: Federal law requiring consideration of accessibility requirements in products and services.

State Warranty Laws: State-specific regulations governing warranty terms and conditions that may exceed federal requirements.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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