A consulting agreement is a written contract between a contractor and their client. It explains what the contractor will be required to do, how long the agreement will last, how the contractor will be compensated, and other key points. This document serves as a legal record of the arrangement's terms in the event of a dispute.
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A consulting agreement outlines the terms of a relationship between a contractor, or independent worker, and client. This contract details the contractor's services, the length of the agreement period, contractor compensation method, and other relevant information. The length of time needed to complete a consulting agreement depends on its complexity and whether the parties decide to negotiate its terms.
Other names for a consulting agreement
Consulting agreements may be called any one of the following:
Consulting agreement form
Independent contractor agreement
Consulting services agreement
Business consulting agreement
Who should use this form?
Independent workers and companies that hire them often use consulting agreements. This document is a legal record of work arrangement terms the parties agree upon. A consulting agreement can be used as evidence if either party disputes these terms and as reference for disputes if confusion arises during the contract's duration.
A contractor and client must both sign and date the consulting agreement form.
What to include in a consulting agreement
A consulting agreement should give key details about the contractor, client, and terms of the arrangement between them. Common items that become part of this document include the following:
Relationship between the two parties, usually stated as consultant and client for tax purposes
Detailed description of the client's expectations of consultant services, including the project's scope and the expected standard of delivery
Any warranty or guarantee on services delivered
Consultant's billing rate and payment terms
Details of what happens if nonpayment occurs
Details of any other fees and reimbursements
Date consultant commences services and expected date of completion
Agreements surrounding termination of services, such as required notice and its effects on compensation
Non-disclosure and non-compete agreements
Agreements about intellectual property and ownership of work produced
Details of the ways client can use consultant's services
Liability and insurance details
Consultant's expected standard of conduct
Other provisions, including governing law, dispute resolution, and waiver of breach
Both parties should keep a copy of the signed consulting agreement. Both the consultant and the client can then refer to the agreement document in order to clear up any matters of confusion.