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A Consultancy Agreement is a contract by which a company engages a consultant to provide services as an independent contractor.

What is a Consultancy Agreement?

Consultancy Agreement is a contract by which a company engages a consultant to provide services as an independent contractor.

A person engaged under a Consultancy Agreement is not an employee and does not enjoy statutory rights as an employee.

It is paramount that the wording on the scope of services in the Consultancy Agreement is clear

What the different between a freelancer and the Consultant?

Freelancer is usually customers tend to think of using your service for a short-term project with a very specific outcome ,and uses his personal tools to work on the project and after the project ended his relationship with the contracting party ends after the project is completed. As a consultant your clients look to you for detailed guidance on a particular area of expertise and usually the projects that he works on are multiple and not only one project.

Benefit of hiring a consultant: Contract work is scalable, easy to terminate when no longer needed, independent advice, diversity of ideas from other experiences,flexible for project specific ,usually a higher level business professional than may be hired.

Key terms

Consultant: The person who someone who advises people on a particular subject.

Services: The services to be provided by the Consultant in such position consultancy capacity for the client or any Group Company.

Consultant services provide: This clause specifies the services that the consultant will provide to the contracted party and the clause specifies how the consultant will provide his service.

consultancy fee: The amount of money the consultant will taking to provide his knowledge and guldens and it has many types like fixed lump sum, fixed monthly fee, based on amount of time worked.

 Confidentiality of the consultant: The information that the party who contracted with the consultant wants to remain confidential.

consultant Intellectual Property Rights: The consultant will own intellectual property rights in the works he creates and the consultant can transfer intellectual property rights in the works to the client as part of the services provided.

consultant non-competition: If the party who is contracting with the consultant wants to clause non-competition in the consultant’s contract, after the termination of the consultant contract,He obligated to not competition in the same field, Or to work for competitor to the contracting party that the advisor previously contracted with.

Force Majeure: Is a clause placed in the Consultants Agreement in the event that either party does not fulfill or delay or fail in performing the obligation If the period of delay or non-performance continues for certain period of time the party not affected may terminate this Agreement by giving certain period written notice to the affected party.

Consultancy agreement duration: It is the period during which the consultant provides his services.


Consultant conflict of interest: Clause that prohibit the consultant involved in multiple interests, financial or otherwise, and serving one interest could involve working against another. Typically, this relates to situations in which the personal interest of an individual r might adversely affect a duty owed to make decisions for the benefit of a third party.

Government law: This clause specifies the law applicable when a dispute occurs and the competent court.

Consultant independency: Consultant shall perform the Contract as an independent contractor and shall not be the servant or employee to the client. 

Consultant duties and obligation: These are the duties and obligations that the counselor performs to carry out his work in the best way, and any breach of these obligations entails responsibility for the counselor.

Consultancy Agreement  date of termination: In the agreement is determined by setting a specific date in the agreement or after the completion of the project contracted with the consultant.



Key points

  • Scope of the services that the consultant will provide;
  • Commencement date of the services;


  • Whether there is a fixed term for providing the services or whether the services will continue until terminated;
  • How much the consultant will be paid;
  • When or how frequently the consultant will be paid;
  • How long the notice period is for terminating the services; and Whether the consultant will be restricted from competing with your business and/or soliciting your employees or other service providers, and if so for how long.
  • consultant non-competition
  • consultant Intellectual Property Rights
  • Confidentiality of the consultant
  • consultant
  • Services
  • Consultancy Agreement  date of termination

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