A Consultancy Agreement is an agreement between an individual who gives professional services to any company or any organisation for a certain time. It is basically a contract between a company and a client. If any company or organisation appoints any outside person who is expert in certain field for a certain time, he has to make an agreement with the company containing details of work, appointment, specify duration, etc.
Such an agreement is necessary as a person who is appointed as a consultant is not an employee of that company. He is appointed as an expert for a certain duration specified. A consultant is a separate individual consultant.
When to use Consultancy Agreement?
When a company wants to hire an expert on some project individually but do not want to appoint him on payroll basis, in such situation Consultancy Agreement is necessary between the company and the expert.
Consultancy Agreement includes:
- Consultant basic information
- Appointed for a specific purpose
- Duration of appointment
- Compensation against the service
- Terms and conditions
- Confidentiality to be maintained by both parties
- How the Dispute is to be resolved