A service contract is a contract between two persons or a company under which one undertakes to provide a particular service to the other. It may also be an explicit employment obligation, signed by both the employer and the employee, which lists the explicit conditions of service. Service contracts define agreements between customers and service providers. Contracts are used to ensure that both parties understand the terms of the agreement. Typical contracts cover topics such as the scope of work and payment terms. If the service contracts cover products, the contract may include repairs, replacement of parts, replacement of the product, diagnosis of the product, upgrade of parts or software, sending a service to carry out repairs, refunds and / or returns.