What is a service contract?

A service contract is best defined as an agreement that covers repair costs for specific products or services. This type of contract usually outlines the provider's obligations to maintain, repair, or replace the product during a specified period in exchange for payment. It acts as a safeguard for consumers, ensuring that potential repair costs will either be covered or at least minimized based on the terms set within the contract.

In contrast, while a warranty for a product might also promise certain types of repair coverage, it is distinct from a comprehensive service contract that may include broader services or maintenance. A loan agreement for purchasing products concerns financing options rather than service provisions. Lastly, a legal contract for product usage primarily relates to permissions and terms of use, instead of the repair and maintenance context that defines a service contract.