If you’re a business owner or consultant, you should be familiar with consulting agreements. A consulting agreement establishes the legal terms for the work, deliverables, budget, and even confidentiality terms for the consulting services, depending on the type of work involved.
This agreement governs the relationship between your company and a consultant that helps your business. It can also serve as the agreement between your company and another party who you provide consulting services to. Here’s what you should know about consulting agreements, and how to create your own.
What should be included in a consulting agreement?
A consulting agreement should offer a detailed description of the services the consultant will perform and the deliverables owed to the client. The agreement may also include liability protections and confidentiality terms.
Typically, a consulting agreement should contain the names of parties and businesses. The agreement should list the scope of work to be performed, who retains the rights to any physical deliverables or intellectual property created, confidentiality terms, the duration of the agreement, and the agreed compensation.
When drafting a consulting agreement, it’s important to make sure all the details are clearly explained to avoid any confusion or misunderstandings down the road. This includes outlining when and how the contract can be terminated, establishing who will own intellectual property developed in connection with the agreement, and specifying which state’s laws will govern the services provided. By including these elements, both parties will have a clear understanding of their roles and obligations, and will be able to move forward with confidence.
Additionally, it’s a good idea to include a clause addressing conflicts of interest and outlining how any disputes will be resolved. This can prevent any potential roadblocks or sticky situations from arising, and will ensure that all parties are on the same page. And last but not least, don’t forget to include a clause stating that the terms of the agreement supersede any oral agreements, so there’s no room for confusion.
Why is a consulting agreement important?
Whenever you work with someone outside of your company, you should have certain terms in that agreement to ensure you are protecting your company from liability and shielding your confidential information and intellectual property.
Many consultants are entrusted with sensitive company information, like client and marketing lists, product designs and intellectual property. Creating a comprehensive consulting agreement ahead of time sets expectations on both sides, and ensures that you’ll have legal recourse should your company confidential information be compromised. Similarly, consulting agreements can prevent misunderstandings between parties.
Generate a consulting agreement template
You can generate your own customized consulting agreement with SixFifty, saving time and money. Best of all, your agreement will be specifically tailored to your company and the work to be done. Static templates found online aren’t customized. They offer generic language that may or may not fit your company. You’ll have to do all the work to make the document fit for your circumstances and to make sure it complies with all applicable laws. This can be time-consuming and expensive, especially if you don’t have your own in-house legal team.
In contrast, SixFifty’s document automation dynamically generates the language your business needs based on your answers to our question flow. As you go through the guided questions, our platform builds your fully customized document just like a law firm would. The result? A superior customized document you can feel comfortable knowing is up-to-date and written by a world-class legal team.
Looking for a consulting agreement sample?
If you’re interested in learning more about consulting agreements, or to see a sample of what SixFifty can generate on your behalf, schedule a product demonstration today. We’d love to show you just how fast and easy it is to generate your own comprehensive consulting agreements, perfectly tailored to your company’s needs. Let the power of technology take the burden off your lawyer or in-house team, so you can focus on more pressing matters.