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English definition of “service contract”

service contract

noun [C]    
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 noun from the Cambridge Business English Dictionary © Cambridge University Press)
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