Consulting Agreement
Alternate Names:
A Consulting Agreement is also referred to as a/an:
- Consulting Contract
- Freelance Contract
- General Contractor Agreement
- Consultant Services Agreement
- Independent Contractor Agreement
What is a Consulting Agreement?
A Consulting Agreement is a contract made between a freelancer and a client that details the terms of their working arrangement, and the desired results for that arrangement, the planned duration of the arrangement and the nature of the project.
A consulting contract is commonly used by businesses that need to engage an outside expert to perform some type of work or provide expert advice, or by a consultant entering into contract on their own terms.
What can I include in a Consulting Agreement?
A consulting contract typically contains the following information:
- What the consultant is being hired to do
- The term of the agreement—whether the contract is on a fixed term, fixed project basis, or open-ended
- Frequency of payment (flat fee, hourly rate, etc.)
- Whether the client will pay the consultant a retainer fee
- How the consultant's expenses will be handled
- The ownership of any intellectual property created under the contract
- Whether the consultant will have a duty to not reveal confidential information
Why should I use a Consulting Agreement?
A consulting agreement clearly defines the terms of the contract for both client and consultant and deals with matters and eventualities the parties might not otherwise address. This reduces the possibility of a misunderstanding arising between the parties and provides a framework for managing all aspects of the working relationship.
It is essential for taxation and auditing purposes that records be kept of all payroll and expense disbursements, and written service and employment agreements are an integral part of that practice.
Consultants can refer to their consulting services agreement to create invoices for a client. They can also keep a copy of the agreement for their files.
It is important for both parties to have a clear idea how long the contract will last, the date it will end, and in what circumstances can the contract be terminated.
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