How is a consulting agreement different from an employment contract?

A consulting agreement creates an independent contractor relationship and an employer-employee relationship is created with an employment contract which involves different tax, benefit and legal obligations.

How specific do I have to be with the scope of work in a consulting contract?

You should be as specific as possible with the scope of work to avoid confusion. You should also include the specific deliverables, timelines, and quality to account for your consulting services in a consulting services agreement.

Can a consulting agreement be terminated early?

Yes, a consulting agreement can be terminated early if the consulting agreement contract includes termination clauses. Most contracts include notice requirements and procedures for early termination.

What happens to the intellectual property developed while working under consulting agreement?

This will be dictated by the terms of your contract for consulting services. Generally, work products belong to the client unless stated otherwise.

Are verbal consulting agreements legally binding?

While verbal agreements can be legally binding, written consulting contracts would be recommended for clarity and enforcement.

Is it possible to modify a consulting agreement?

Yes, but both parties must agree to the modifications in writing. Avoid making any modifications verbally, as they may be legally difficult to enforce.

Is notarization required similar to a contract in India?

Not, unless stated otherwise, notarization is option but serves to add authenticity and strengthens legal enforceability.

What limitations are there to the consultant liability?

Most agreements will attempt to limit the consultant's liability and may attempt to provide indemnification to protect parties.

Can consultants work with multiple clients?

Yes unless there is some sort of non-compete or exclusivity clause that states otherwise.

If a project exceeds scope, what then?

Any extra work may require extra fees, but each agreement should have a scope of work outlined in detail describing work and actions taken in the event of out-of-scope work.

Consulting Agreements Basics: Meaning, Clauses & Guide

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