Also known as a services contract, a consulting agreement includes what the client wants in matters of performance, what the consultant want in term of pay, as well as a mutual agreement on liabilities and remedies. Basically, this written document clears and defines anything that might come into question later.Business Advice for a Consulting Agreement Picture
Specify the start date of the consulting agreement, when it ends and whether it continues until the moment of a written termination. State if it is an exclusive agreement or you can also work on other projects and with other clients. Establish detailed terms regarding payment and penalties for late payments. Also include the procedure for termination of services.
It is imperative to include in the consulting agreement some detailed descriptions about the work you will perform. Both you and the client need to know exactly what the work is implied to be made, otherwise you can be asked to do more work for the same money. Clients have the tendency to add more tasks to the original contract therefore the initial consulting agreement should clearly specify the limits.
Your work as a consultant depends on the information offered by the client. In case you accidentally cause outside legal problems such as patent infringement due to inadequate guidance from the client, the consulting agreement should say that the client will compensate you and pay all legal fees concerning the matter. This term is very important if you don`t want to be in the situation of defending yourself in a lawsuit caused by your client`s negligence.
You should fully understand the agreement, so keep a simple language and avoid confusing legal terminology. Always have the consulting agreement reviewed by an attorney. If you don`t understand the contract, you will probably find yourself in situations when your client refuses to pay you because your performance was not as promised.