Availability guarantee: Overview, definition and example
What is an availability guarantee?
An availability guarantee is a commitment made by one party to ensure that a service, product, or system will be available for use or delivery as agreed. This guarantee assures the other party that the service or product will be accessible within a specified timeframe and without significant downtime.
For example, a software provider might offer an availability guarantee to a client, promising that their platform will be up and running 99.9% of the time, excluding scheduled maintenance.
Why is an availability guarantee important?
An availability guarantee is important because it helps manage expectations between parties, especially in contracts where consistent service or product access is critical. It provides reassurance that the other party will be able to rely on the service or product without unnecessary interruptions. This type of guarantee is commonly found in service-level agreements (SLAs), where uptime and availability are key performance metrics.
For businesses, having an availability guarantee in place can help mitigate the risk of operational disruptions, minimize potential downtime, and ensure customer satisfaction by providing continuous access to essential services.
Understanding availability guarantee through an example
Imagine a business that relies on an online payment processing platform for transactions. The platform provider includes an availability guarantee in the contract, specifying that the platform will be operational 99.9% of the time. If the service falls below this threshold, the provider may be required to offer compensation or other remedies to the business.
This example highlights how an availability guarantee ensures that critical systems remain accessible and provides a framework for addressing any failures.
An example of an availability guarantee clause
Here’s how an availability guarantee clause might look in a contract:
"The Service Provider guarantees that the Service will be available for use 99.9% of the time, excluding scheduled maintenance. In the event of any downtime exceeding this threshold, the Service Provider shall compensate the Customer as outlined in the Service Level Agreement."
Conclusion
An availability guarantee ensures that a product, service, or system will be accessible as promised. It provides confidence to the other party that they will not face prolonged interruptions or downtime. By including this guarantee in contracts, businesses can protect themselves from operational disruptions and ensure reliable service delivery.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.