What Is a Consulting Agreement? Key Terms & Examples
A consulting agreement is a legally binding contract between a consultant and a client, outlining the scope of work, payment terms, confidentiality clauses, and responsibilities. This agreement ensures both parties are aligned regarding project objectives, timelines, and deliverables. It is crucial for businesses hiring external consultants to protect sensitive information and clarify expectations. Key elements include the duration of the contract, intellectual property rights, termination clauses, and dispute resolution mechanisms. A well-drafted consulting agreement helps prevent misunderstandings and legal issues, offering security for both the consultant and the client. Whether hiring an expert for business strategy, marketing, or IT services, having a structured agreement is essential.