The agreement covers services such as IT, payroll, accounting, and facilities during a defined transition. Terms address scope, pricing, service levels, duration, and extension rights.
Disputes commonly involve service quality and extension.
Alternative Names:
TSA|Transition Services
Why it Matters?
Extension rights and pricing on extension are where disputes concentrate, since a buyer that failed to stand up its own systems within the initial term has limited leverage and the seller has every incentive to price extension punitively. Negotiating extension terms upfront rather than at expiration is the control. Service level definitions also matter because a seller winding down the function may deprioritize a business it no longer owns.
Frequently Confused with
Related terms
Frequently asked questions
Where do TSA disputes concentrate?
What is the control?
