Service Contract (or Mechanical Breakdown Coverage or Extended Warranty)

A contract you may purchase to cover such expenses as the repair or replacement of vehicle components and, in some cases, related services such as towing or replacement rental cars. In most cases, service contracts do not cover routine maintenance. Distinguish from Maintenance contract.

Source: Federal Reserve Board

As provided in the Shipping Act of 1984, a contract between a shipper (or a shippers association) and an ocean common carrier (or conference) in which the shipper makes a commitment to provide a certain minimum quantity of cargo or freight revenue over a fixed time period, and the ocean common carrier or conference commits to a certain rate or rate schedule as well as a defined service level (such as assured space, transit time, port rotation or similar service features). The contract may also specify provisions in the event of nonperformance on the part of either party.

Source: U.S. Maritime Administration.

Last reviewed October 2023