Last edited 22 Jan 2018

Internal contract

An internal contract is one that exists between a principal and an agent, i.e. the agent is legally appointed to act on its behalf. An external contract is one that exists between a principal and a third party, usually with the facilitation of an agent.

A service level agreement (SLA) is a common type of internal contract, which sets out what a supplier/service provider is required to provide to the client, and to what standard.

For more information, see Service level agreement.

Internal contracts can be prepared within an organisation, i.e. between teams or departments, or used for the outsourcing of services, such as facilities management, IT services, and so on.

Some of the elements typically required in an internal contract include:

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