What is a service level agreement (SLA)?

A service level agreement (SLA) is fundamentally a contract that specifies the expected service levels and performance metrics between a service provider and a client. It serves as a crucial part of the overall service delivery structure, establishing clear expectations on the quality, availability, and responsibilities involved in the service provision.

The core purpose of an SLA is to ensure that both parties have a mutual understanding of what constitutes satisfactory service. This includes specific measurable details such as response times, uptime guarantees, and performance criteria, which guide accountability and performance assessments.

In contrast, the other options focus on different aspects of contracts. Pricing and discount terms relate to financial agreements rather than service benchmarks. Termination conditions govern how a contract can be ended, which is not the focus of an SLA. Finally, while payment terms are important in financial agreements, they do not address the service quality or performance measures that are central to an SLA. Thus, option C accurately captures the essence and purpose of a service level agreement.