Legal Term
software maintenance agreement SLA penalty for missed response time
Legal Definition
A contractual provision in a software maintenance agreement that imposes predefined financial penalties, such as service credits or liquidated damages, on the service provider for failing to meet the specified response times for support requests as defined in the Service Level Agreement (SLA).
In Plain English
If the software support company doesn't answer your problem as quickly as promised in the contract, they must give you a refund or discount as compensation.
Example in a Contract
Should Provider fail to provide an initial response to a Priority 1 Incident within one (1) hour of Customer's submission, Provider shall credit Customer's account with a sum equal to 2% of the monthly maintenance fee for each hour of delay, capped at 20% of the monthly fee per incident.
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