This Agreement is a service level agreement (“SLA” or “Agreement”) between [company name] and [customer name] for the provision of services ______ Essentially, the shared services unit becomes another business entity that is perceived and managed like any external provider and has to compete in both price and service. The words “agreement” and “contract” are often used as if they were equal, but they are not. Black`s Law Dictionary defines an agreement as “a mutual understanding between. The parties to their rights and obligations relating to them. It also states that it is an agreement that creates obligations between the parties that the law can enforce.