Meaning of “service contract” in the English Dictionary

"service contract" in Business English

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service contractnoun [ C ]

uk us

HR a formal agreement between a company and an employee in a high position about their pay and conditions of employment (= rules under which they are employed):

The company has reduced service contracts for its executive directors to one year's notice.
She was on a two-year service contract.

COMMERCE an agreement between a company and a customer, stating that the company will check and repair equipment for an agreed price during a fixed period of time:

Make sure you don't pay too much for an extended warranty or service contract.

COMMERCE an agreement with a mobile phone company in which the customer pays a fixed amount each month:

New customers can terminate a service contract within the first three days without being charged.

(Definition of “service contract” from the Cambridge Business English Dictionary © Cambridge University Press)