Definition of "Service contract"
Tony Pykiet, Real Estate Agent
Coldwell Banker Gundaker
Agreement bought by a homeowner for servicing of household items. This contract may be taken out with the contractor or third party. Example are service contracts on household appliances. A service contract provides the owner with the assurance of knowing the item will be repaired at a set fee if problems arise. However, a service contract is usually more costly than paying for repairs as incurred.
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