Consulting Contracts

Sometimes companies are in need of a consultant to provide professional advice on a project. When creating a consulting contract, it should include certain requirements such as:

  • An offer
  • The acceptance
  • Valid consideration
  • Mutual asset
  • A legal purpose

Including these into a consulting contract will help to make it legally binding. In-house counsel can draft a contract that follows state laws.

Contracts need to outline what each party is going to do. This is fairly basic, outlining that one party is consulting for another. It should then define the consulting services that will be provided. Also, it will outline the compensation agreement between the two businesses.

One of the most important distinctions in a consulting contract is determining whether the consultant will be an employee or an independent contractor. Most of the time they will be an independent contractor, but the relationship needs to be made clear.

The contract should include a termination provision on how the company can terminate the agreement before completion of services, if necessary.   Any additional provisions would then be written in at the end. They can range from modification provisions to severability provisions.

A lot can go into a consulting contact, and negotiating will probably happen. An attorney will be helpful in structuring the consulting agreement and especially if negotiations or issues do arise. 


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