What is a consulting agreement

A consulting agreement is that type of an agreement which is made between a consulting unit or body or person and a client. Such agreements are like other agreements which are written formal documents and are formed for a certain period of time and with specific monetary considerations. Consulting agreements have full residential and official details of the parties involved along with the effective date and date of termination. These agreements are quite important in nature.

Basically, in a consulting agreement, both parties come to mutual understanding of certain terms and conditions which are set forth so as to avoid any kind of confusion in the future course of the agreement period. By having such an agreement, the parties, no matter what history of correspondence they have, are constantly assured that the other wouldn’t commit a fraud case or cheat him in any case or circumstance. This fact of assurance and security is the main reason why consulting agreements are so important and popular.

The fact that the consulting party and the client are time bound under the agreement gives them both a reason not to continue after the termination date and not finish before it. The monetary considerations and details make it compulsory for the client to pay for the services taken and let the consulting agent be financially secured as far as the agreement period is concerned. Infact due to certain clauses of compensation, if the client doesnt pay the consulting party after a fixed period of time, then he can be forced to pay a certain compensation charge as mentioned in the agreement terms.

Another reason why any consulting agreement is so important is because in the case where there is a dispute over any term or condition, a legal body can interfere and have a yardstick to know which party is at fault and what kind of action must be taken.

Category: Sample Agreements

Leave a Reply