What Is a Service Contract?

Warranties and service contracts are necessary in providing customers with a certain degree of maintenance and upkeep based on the product that was purchased. This type of contract, which may also be known as a service agreement, is a special document that is typically found in many warranties and sales contracts.

What to Expect From a Service Contract

Though basic warranties may cover general assurance of quality, service agreements will go above and beyond by stating the exact services that a customer may be entitled to based on any issues that come up with the product. The nature of the service contract may vary based on what was purchased and whether a premium contract was chosen. Some products, such as cars and electronics, often have standard contracts whereas other products might feature certain restrictions, should they include such an agreement. Certain agreements work like warranties and can be purchased with the product.

What the Service Contract Covers

When customers are informed of their options, they may better know what to expect from the services in the future. Service contracts often vary in terms of what coverage they provide for interested individuals. Some more expensive products, intended for long-term use, may feature as many clauses as necessary in order to provide customers with a better service. On occasion, the contract may also cover more esoteric options, such as upgrading software or parts, or dispatching customer service representatives in order to conduct on-site repairs. Individuals may also be able to work with refund options or gain immediate access to a more streamlined customer service option if necessary.

If something is unclear in the contract, individuals may be better equipped for potential legal issues by speaking with a lawyer. A legal professional will be able to help individuals learn more about their rights, and how to sort through potential misunderstandings or ambiguous conditions.