service contracts

Ongoing repair coverage

Service contracts are agreements where one party provides ongoing maintenance, repair, or support for a product or system.

They typically cover appliances, vehicles, or equipment beyond the manufacturer's warranty: The dealership offered a service contract for an extra three years.

Service contracts may also govern employment arrangements for professional services, specifying terms, deliverables, and compensation.

Opposites
ownership model

service contractsself-service

Customer performs the task

self-repair · warranty void

transactional structure

service contractspay-as-you-go

Immediate settlement required

fee-for-service · hourly billing · retail pricing

Family

service, contract

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Everyday, not technical · Rated G