Short answer: A service level agreement, or SLA, defines measurable service commitments such as uptime, response times, resolution times, support hours, reporting and remedies.
SLAs turn broad service promises into operational standards. They help teams manage supplier performance, escalate incidents and decide whether service credits or termination rights apply.
A hosting SLA may promise 99.9 percent monthly uptime, priority-one response within one hour, planned maintenance windows and service credits if uptime falls below target. The SLA should be read with the limitation of liability clause.
Common mistakes include unclear measurement periods, broad exclusions, remedies that are too small to matter, missing reporting obligations and no link between repeated SLA failure and termination rights.
See also how to negotiate an SLA, audit rights clause and Canada contract management checklist.
Reviewed for general contract operations use. This definition is general information and is not legal advice.