Service-Level Agreement

Service credits are useful for incentivizing the service provider to improve performance, but what if service performance is significantly lower than expected? If the SLA contained only one service credit, the customer, unless the service provided was so bad that it constituted a substantial breach as a whole, might be able to pay for an overall unsatisfactory service (albeiving at a reduced rate). The solution is to include a right for the customer to terminate the contract if the provision of services becomes unacceptable. Therefore, the SLA should contain a level of critical service level failure, below which the service provider has that right of termination (and the right to bring an action for damages) .. . . .