How legally binding is a consultancy agreement?

Published: 27th April 2012
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A consultancy agreement is a contract that is made between clients and consultant to record the terms and condition for providing the consultancy services. It must be in written form in order to enforce it. It is valid and legal agreement. Each party can sue the other on the breach of any provision of the agreement. It must be made before the hiring the services of the consultant. It must provide the payment info and term of the agreement.

What is the term of consultancy agreement?
It‘s term vary from situation to situation. Mostly it is made for month or years. It must protect the interest of the client.

Can I terminate the consultancy agreement?
Yes, you (client) can terminate the consultancy agreement if:
• Consultant braches the confidentiality term of the agreement; or
• Consultant involves in such other activities that affect the consultant performance under the agreement.

What are my obligations?
As a client, you must give access to consultant to all relevant documents that are necessary for the performance of the commitment. You must pay the fee in time and hold the meeting with consultant from time to time.

What are the duties of consultant?
It is the duty of the consultant to perform the task with high skill standard and business ethics. The consultant must protect the confidential information of the client. It is good practice that description of the services required by the consultant must be provided in the schedule to the agreement. It will be easy to amend it as the relationship evolves rather than amending the whole agreement.

Is a consultant can assign the task to other?
No, consultant cannot do so without your permission. So, the consultant is personally bound to provide the consultancy services. The consultant can assign the task to other if it is allowed by you.

What about consultant work?
The best position is that you must get the inclusive ownership of all the documents that consultant prepares but also copyright to those documents. The consultant will demand the high fee to waive the right of ownership and copy right. The consultant agreement must provide the clear info about this matter.

What must be included in the consultancy agreement?
Net Lawman provides the following types of consultancy agreements with explanatory notes. Such as:

• Consultancy agreement

• IT consultant's terms and conditions: through company

• Consultancy Terms and conditions: consultant

• Human Resources consultancy agreement: sole trader

The main contents of the consultancy agreement are:
• Consultant's obligations;
• Consultant's status;
• Consultant's fees and expenses;
• Duration and termination;
• Matters after termination;
• Consultant's other work;
• Data protection;
• Insurance;
• Confidentiality;
• Intellectual property;
• Appropriate legal provisions - warranties, exclusions, indemnities to protect your interests

Can a consultant terminate the agreement?
Yes, the consultant can terminate the agreement if you do not pay his fee regularly or you have breached the any provision of the agreement. You must specify the grounds in the agreement under which the consultant has a right to terminate the agreement.

The consultancy agreement is a valid document and it must be comprehensive. It must describe the rights and obligation of the both parties. It must not violate the any law.

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