Master Services Agreement in Israel: Template, Key Clauses and Local Law (2026)

What a master services agreement does in Israel A master services agreement (MSA) holds the master terms between a service provider and a customer, so each new project runs under one signed framework. In Israel the MSA sits above statements of work or order forms that carry the price, scope, and timeline for each engagement, which keeps the legal terms stable while the commercial detail changes. ## The Israeli law that applies Israel has a mixed legal system, with codified contract statutes alongside case law. The main ones for an MSA: - Contracts (General Part) Law, 5733-1973 governs formation, interpretation, and the duty to act in good faith, both in negotiation and in performance. Good faith is a central principle in Israeli contract law.

• Contracts (Remedies for Breach of Contract) Law, 5731-1970 sets out remedies: enforcement, cancellation, and damages.
• Sale Law, 5728-1968 can imply terms where the arrangement involves the sale of goods.
• Protection of Privacy Law, 5741-1981 matters where the provider handles personal data. Amendment 13, which came into force on 14 August 2025, broadened the definition of personal information and strengthened enforcement by the Privacy Protection Authority. Arbitration seated in Israel runs under the Arbitration Law, 5728-1968. This is general information, not legal advice. Confirm the position with an Israeli qualified lawyer before you sign. ## Key clauses to get right - Scope and SOWs: state that each SOW incorporates the MSA and which document wins on conflict.
• Charges and payment: currency (often ILS or USD), invoicing, and late payment.
• Intellectual property: ownership of deliverables and licences for background IP.
• Confidentiality: define confidential information and the survival period.
• Data protection: align with the Protection of Privacy Law where personal data is handled.
• Liability: a clear cap and exclusions, read against the good faith duty.
• Governing law and dispute resolution: Israeli law, and the courts or arbitration. ## A simple MSA skeleton 1. Parties and definitions

2. Structure (MSA plus SOWs, order of precedence)
3. Services and service levels
4. Charges, invoicing, and taxes
5. Intellectual property and licences
6. Confidentiality and data protection
7. Warranties and liability cap
8. Term, termination, and suspension
9. Governing law and dispute resolution
10. Signature block ## Common mistakes - Ignoring the good faith duty, which Israeli courts read into negotiation and performance.

• Copying a liability cap without checking how Israeli law treats remedies and fairness.
• Forgetting data protection duties under the Protection of Privacy Law after Amendment 13.
• No clear exit plan for data and deliverables on termination. ## One workspace to manage it Teams that run many MSAs and SOWs lose time tracking versions, renewal dates, and which SOW sits under which master. A single AI workspace like Adira can hold the master terms, every linked SOW, and the key dates in one place, with drafting and clause level review built in. Adira is deepest on Indian law today, and wider non-India jurisdiction depth, including Israel, is on its roadmap, so treat local Israeli review as a separate step.