Service Agreements (SAs) are often inappropriately developed, documented and deployed. For the accurate management of the client’s requirements, SAs play a critical role. Appropriate SAs serve both the service provider and the client. The role, content and structure of an SA need to be understood before an attempt to develop them can be mounted to develop them. There are distinct process elements and key development principles for the development of an SA. This paper describes SAs, explores their purpose, content and structure and concludes by describing the eight SA development principles.