Consultancy Agreement

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What is

Consultancy Agreement

A person may require consultancy services for gaining assistance on subjects where it lacks expertise, therefore they hire consultants to gain knowledge and assistance on the same.

A consultancy agreement stipulates the scope of work along with the rights and obligations of the parties for the execution of the same. A consultancy agreement is entered into on a principal-to-principal basis, i.e. neither Party shall be entitled to act on each other’s behalf or bound by the acts of the other party. 


1.  What is the importance of a consultancy agreement?

A consultancy agreement is executed between the parties to define the terms of service, rights and obligation of the Consultant during the term of this Agreement and post-termination. Further, this Agreement is executed to ensure that any information shared between the parties remains confidential and the intellectual property is protected.

2.  What all should a consultancy agreement incorporate?

A consultancy agreement should incorporate the following:

  • Scope of work
  • Payment structure
  • Confidentiality of information and Intellectual Property Rights
  • Non-solicitation and Non-compete Obligations
  • The relation between the parties