Consulting Agreement


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Alternate and similar names:
A Consulting Agreement is also known as:

  • Business Consulting Agreement
  • Independent Contractor Agreement
  • Consulting Contract/Agreement
  • Freelance Agreement/contract

What is a Consultant?
A consultant, also referred to as a freelancer or contractor, is a business or individual that delivers professional services or advice to a customer in exchange for compensation fee. A consultant often specializes in a particular business area or industry, such as marketing, human resources, engineering etc.

What is a Consulting Agreement?
A Consulting Agreement is a contract outlining the terms regarding the service between a consultant and customer/client.

When should I use a Consulting Agreement?
From a consultant perspective:
You should use the contract before rendering any services to another individual, business or organization in exchange for monetary compensation.
A consultant may use an agreement to protect his or her interests and ensure he or she gets paid by the customer by outlining a formal written agreement of the services being provided.

From a customer perspective:
You should use a Consulting Contract when hiring a consultant to perform any service for you or your business.
A customer may choose to use a Consulting Agreement when hiring a contractor to protect company information through non-disclosure clauses.

A Consulting Agreement includes at least the following:
  1. Basic contact information for both the customer and service provider.
  2. Services Provider: A clear description of the services provided by the consultant is included in the contract, including the duration of the agreement.
  3. Compensation: The contract includes terms about how much and when the customer will pay the contractor in exchange for his or her services.
  4. Confidentiality, Non-solicitation, and Non-competition: The Consulting Agreement contains provisions about confidentiality. These terms help to prevent a consultant from disclosing sensitive material about the customer or company, such as trade secrets, client lists, marketing campaigns and more, for a designated period of time.
  5. It also addresses non-solicitation and non-competition terms, whereby the consultant is restricted from competing unfairly or soliciting business from the customer.
  6. Materials: Generally the consulting contract will address whether the ownership rights of the product or service supplied by the consultant will be retained by the customer or remain with the consultant upon completion.


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