Consulting Agreement Template
A consulting agreement is a contract between an consultant and a client setting out each party’s rights and obligations, such as compensation and type of work. This contract is useful for freelance professionals and other services providers and those using their services. For example, programmers, landscapers, graphic designers and their clients may require this consulting agreement.
Difference between Consultants and Employees
Consultants do not have the same protections as employees for issues such as holidays, overtime and termination. However, a consultant-client relationship is not exclusive and the consultant is free to work for other entities.
Consultant: the person or entity providing the services. Also called service provider or independent contractor.
Client: the person or entity receiving the services.
When to use this consulting agreement template?
Whenever the parties wish to clarify the terms of the services to be provided by the Consultant and the price to be paid by the Client.
Important considerations for both parties
- Duration of the contract: between which dates will the contract be in effect?
- Payment schedule: how and when will Client pay the Consultant? Does the Consultant have to meet certain deliverables in order to be paid?
- Services to be rendered: description of the services required from the Consultant
Specifications of this agreement
This consulting agreement template has many options. The most important ones are as following:
- Compensation: you can choose different compensation methods such as single payment, payment by installments and payment upon receipt of certain deliverables.
- Non-competition clause: you can choose to include a prohibition for the Consultant to compete with the Client’s business for a certain period of time after termination of the agreement.
- Non-solicitation clause: you can also choose to include a prohibition for the Consultant to solicit clients or other employees away from the Client.
- Damages in case of breach: you can also include a provision providing for damages if the Consultant breaches any of his obligations under the agreement.
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