A Service Level Agreement should not only classify the type of services being rendered by the service provider, but should also include the functions, duties and liabilities of the parties, penalty in case of any breach or violation, termination and its consequences, dispute resolution, among other things.
SLA can be structured in three different ways. Service-based, customer-based, and multi-level or hierarchical SLAs are all available. When deciding which SLA composition is best for a company to utilize, several various considerations must be considered.