Consultancy Agreement

A consultant agreement is a legal document that comes into play whenever any company appoints an outside or external consultancy firm or consultant. The company may choose to employ these consultants for the short-term as a part of a specific program or project. Rather than hiring such people for substantial time frames, the company seeks external experts who have in-depth knowledge in that area. In such instances, when the nature of employment is contractual, it is always better to sign a consultant agreement. It works as a legal proof that validates that the company and the consultant got into an agreement based on some initial criteria. Doing so will prevent any mishaps from taking place further down the line.

Benefits of Consultancy Agreement

• Details the activities that the consultant is contractually and legally responsible for
• Serves in protecting the interests of both the company and the consultant in question.
• Covers all the details regarding the employment and PROJECT undertaken.
• Acts as a legal documents in case of any disputes between the company and the consultant
• Reduces the risk of litigation

FAQ

What is the meaning of consultancy agreement?

A consultancy agreement is a form of legal document which is required when a company appoints any outside or an external consultancy firm or a consultant for a specified period of time.

What is the purpose of a consultancy agreement?

The consultancy agreement helps to protect the data of the company along with the intellectual property matters. It is also considered as an aid of proof in case if any dispute arises between the parties to the agreement during the course of employment.

Who are the parties in a consultancy agreement?

The parties to the consultancy agreement are the company and the consultant or the consultancy firm.

What kind of agreement is a consultant agreement?

A consultant agreement is considered to be a kind of service agreement.

Are consultants considered to be an employee of the company?

All consultants work as an independent contractor, thus cannot be considered as an employee of the company. Any consultant hired for work has an exclusive anset of terms and conditions to work for.

Mention the key elements to be included in a consultancy agreement?

Any consultancy agreement must mention the time frame of the project on which the consultant is set to work, hours to work along with the deliverables of the project and the manners in which the business will pay to the consultant for the services rendered.

Why is hiring a consultant beneficial?

The consultants are beneficial for the company as the company gets an outside perspective and direction for betterment in a project. All consultants hired have expertise in their field, which helps the business of any company.

Does the consultancy agreement contain any confidentiality clause?

Yes, every agreement consists of a confidentiality clause which obligates both the parties for non-disclosure of any information related to the company or business.