What is a service level agreement (SLA)?

A service level agreement (SLA) is fundamentally a contract that outlines the expected level of service between a service provider and a customer. The SLA specifies key performance metrics that the provider is obligated to meet, such as availability, response times, and quality of service. It serves to establish clear expectations and responsibilities for both parties involved, which helps ensure accountability and transparency.

SLAs are crucial in a variety of industries, particularly in IT and telecommunications, where services are often delivered remotely. By defining the parameters of the service, an SLA helps to mitigate misunderstandings and provides a framework for resolving issues that may arise related to service delivery.

The other options, while related to service provision, do not accurately capture the essence of an SLA. They deal with various aspects such as customer rights, payment terms, and dispute resolution, but the core of an SLA is its focus on the service levels that the provider commits to delivering.