A Consultancy Agreement outlines the terms and conditions between a company and an individual consultant. This agreement ensures both parties understand their rights and obligations. Here, we delve into the key elements of a typical consultancy agreement.

Engagement and Services

The agreement starts by defining the engagement. The company hires the consultant to provide specific services. Exhibit A of the agreement details these services. The consultant performs these services with diligence and proficiency. The company provides necessary access to its information and resources.

Consultancy Period and Termination

The consultancy period begins on the effective date and continues until the consultant completes the services or either party terminates the agreement. in this Consultancy Agreement, either party can terminate the agreement by providing written notice. Termination can occur without cause or due to a material breach of contract. Material breaches include violations of specific articles, inability to perform services due to incapacity, gross negligence, or insolvency.

Consultancy Fee and Expenses

The consultant receives an hourly fee for services rendered. The company also reimburses the consultant for pre-approved expenses incurred while performing services. In such a Consultancy Agreement, the consultant shall submit a monthly invoice detailing the services performed, and the company pays within the agreed period.

Work Product and Intellectual Property

The company owns all work products created by the consultant. This includes all information, designs, inventions, and intellectual property. The consultant assigns all rights to the work product to the company. The consultant cannot use the work product without the company’s prior written consent.

Confidentiality and Non-Competition

Confidential information includes all business-related information the company discloses. The consultant does not disclose this information to third parties. The consultant also agrees not to engage in competitive business activities during the agreement term. Additionally, for one year after termination, the consultant cannot solicit the company’s clients or employees.